Steel Authority Of INDIA LTD.(Sail) vs. Primetals Technologies INDIA PVT. LTD. (Formerly Known As Siemens Vai Metals Technologies PVT.LTD)
Held
The High Court reduced the awarded interest rate from 14% to 10% per annum, finding it unreasoned and excessive. It also reduced the awarded costs of arbitration to 50% of the actual costs, as agreed by the respondent.
Facts
Steel Authority of India Ltd. (SAIL) challenged an arbitral award that allowed claims of Primetals Technologies India Pvt. Ltd. The dispute arose from a contract for a steel plant project, specifically concerning CENVAT credit shortfalls and reimbursement of Central Sales Tax (CST).
Key Issues
Whether the arbitral award on interest and costs was justified and reasonable, considering the grounds for challenging an arbitral award under Section 34 of the Arbitration and Conciliation Act.
Sections Cited
Section 34
AI-generated summary — verify with the full judgment below
OMP(COMM)349/2020
$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision:- 12.03.2020
+ O.M.P. (COMM) 349/2020 & I.As 1862-64/2020
STEEL AUTHORITY OF INDIA LTD.(SAIL) ..... Petitioner Through: Mr.Sandeep Sethi, Sr.Adv with Mr.Puneeth Ganapathy, Ms.Ishita Mathur, Advs.
versus
PRIMETALS TECHNOLOGIES INDIA PVT. LTD. (FORMERLY KNOWN AS SIEMENS VAI METALS TECHNOLOGIES PVT.LTD) ..... Respondent Through: Mr.P.C.Markanda, Sr.Adv with Mr.V.K.Sharma, Mr.Rajesh Markanda, Ms.Reema Soni, Advs.
CORAM: HON'BLE MS. JUSTICE REKHA PALLI
REKHA PALLI, J (ORAL)
The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 filed by Steel Authority of India Limited, who was the respondent before the learned Arbitrator, assails the arbitral award dated 15.10.2019 whereunder the claims of the respondent have been allowed with actual costs of arbitration and interest @ 14% per annum.
The brief facts as emerge from the record are that the Digitally OMP(COMM)349/2020
The judgment continues below.
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