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2016 (2) TMI 1257 - HC - Indian LawsCancellation of a contract - tenability of the award by the arbitrator appointed under the Arbitration Act of 1940 - damages for alleged unlawful cancellation of the contract - HELD THAT:- The CWE has also a power to decide if there was any delay attributable to the execution of the contract within the control of the Arbitrator, in which case, the amount claimed as increase in prices in materials would not be claimed. To the extent to which the redressal mechanism was also provided and the failure of the contractor to lead any evidence or make a statement that he had applied to CWE for such payment, the award by the Arbitrator was truly on a head of claim that must only be reckoned as 'improperly procured or otherwise invalid'. There is no error in the intervention made by the court in the light of the Supreme Court judgment in State of Rajasthan Versus Ferro Concrete Construction Pvt. Ltd. [2009 (4) TMI 997 - SUPREME COURT] where it qualified the award of interest at 18% by the arbitrator as constituting an error apparent on the face of the record. The court guided for future awards that reference to interest for pendente lite or future interest should always be 9% in light of the provisions of the Interest Act, 1978. The civil revision partially succeeds in restoring the award passed by the Arbitrator - the rejection of the claim to Clause No.2(L) by the two courts below stands confirmed - The reduction of interest rate at 9% per annum is also justified - revision allowed in part.
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