M/S M. G. Contractors PVT. LTD. vs. Union Of INDIA

Arb.A./2/2022HC SikkimGSTCNR SKHC01000060202228 May 2024Bench: HON'BLE THE CHIEF JUSTICE SHRI BISWANATH SOMADDER,HON'BLE MR. JUSTICE BHASKAR RAJ PRADHAN11 pages
AI SummaryPartly Allowed

Held

The High Court dismissed the Union of India's appeal, affirming that the claims were not time-barred and that a Section 34 application cannot seek modification. It allowed M/s M.G. Contractors Pvt. Ltd.'s appeal, setting aside the Commercial Court's *suo motu* modification of the arbitral award, reiterating that courts lack the power to modify awards under Section 34.

Facts

CPWD awarded a road construction contract to M/s M.G. Contractors Pvt. Ltd. Disputes arose, leading to an arbitral award including claims for escalation, interest, and GST. The Union of India challenged the award under Section 34 of the Arbitration Act on grounds of limitation, while M/s M.G. Contractors Pvt. Ltd. challenged the Commercial Court's *suo motu* modification of the award.

Key Issues

The key issues were whether the arbitral claims, including GST, were barred by limitation, and whether a Commercial Court acting under Section 34 of the Arbitration and Conciliation Act, 1996, has the power to *suo motu* modify an arbitral award.

Sections Cited

None

AI-generated summary — verify with the full judgment below

THE HIGH COURT OF SIKKIM : GANGTOK (Civil Appellate Jurisdiction)

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DIVISION BENCH: THE HON’BLE MR. JUSTICE BISWANATH SOMADDER, CHIEF JUSTICE THE HON’BLE MR. JUSTICE BHASKAR RAJ PRADHAN, JUDGE ---------------------------------------------------------------------------

Arb. A. No. 1 of 2022

Union of India

Represented by Executive Engineer,

Border Road Project, Division II. CPWD, Above Post Office, Chungthang, North Sikkim – 737120. ….. Appellant

versus

M/s M.G. Contractors Pvt. Ltd., M.G. House, 1721, Sector-4, Panchkula Haryana – 134109. ….. Respondent

Appeal under section 37 of the Arbitration & Conciliation Act, 1996

------------------------------------------------------------------ Appearance: Ms Sangita Pradhan, Deputy Solicitor General of India with Ms Purnima Subba and Ms Natasha Pradhan, Advocates for the appellant.

Mr. Zangpo Sherpa, Mr. Bhaichung Bhuti

The judgment continues below.

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