Arbitration case
Perumal Prabhu
(Querist) 26 May 2010
This query is : Resolved
Dear Sir/Mam
one contract was terminated by our administration on risk an cost for an amount of Rs 4,oo,oo,ooo/-. We proposed to recover the risk an cost from the failed contractor from other ongoing contracts on which we have lien under agreement. meanwhile the contractor filed application U/s 9 of Arbitration and Conciliation Act 1996 and got interim stay against the recovery. on final disposal of the application the civil judge has allowed the application in part. the Hon'ble Judge set quashed our recovery notice but ordered the contractor to submit surity of immovable property worth Rs 4 crores till the disposal of Arbitral Proceedings.
The contractor went on appeal before the High Court U/s 37 of A & C Act 1996 and got modified the order passed by the trial court. the condition imposed by the trial court to produce surety was set-aside. the reason given by the Hon'ble High Court is that our administration is not having authority to determine the amount. the arbitral tribunal is the authority to determine the amount. If the risk and cost amount is not recovered from the contractor at this stage then it will be difficult to recover the same once his other projects are completed.
In this regard can any one give me any case law to challenge the orders passed by the Hon'ble High Court?
