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2020 (2) TMI 1525 - HC - Indian LawsValidity of Arbitral Award - calling of entire records of arbitration proceedings before the Ld. Sole Arbitrator - impugned Award passed after more than three years - time limitation of counter claim filed by the respondent No.1 - whether the counter-claim could have been awarded contrary to the stipulation in the Supplementary MoU? - HELD THAT:- The submission of the learned counsel for the petitioners is primarily that in terms of the said stipulation, the amount was to be paid to M/s. Brawn Pharmaceuticals Ltd. Admittedly, M/s. Brawn Pharmaceuticals Ltd. was not a party before the learned Arbitrator. In fact, it is his submission that the respondent No.1 has resisted the petition filed under Section 11 of the Arbitration & Conciliation Act, 1996 by stating that there is no dispute between the petitioner and the said respondent. The grant of the counter claim in favour of the respondent No.1 is contrary to the stipulation in MoU - the submission made by the learned counsel for the petitioners is agreed upon, inasmuch as the stipulation, as reproduced above clearly states that predecessor-in-interest of the petitioners herein Late Pawan Kumar Gupta was personally liable to pay M/s. Brawn Pharmaceuticals Ltd. the unrealised portion of their share amounting to ₹ 49 lacs. Concedingly, M/s. Brawn Pharmaceuticals Ltd. has not raised a claim before the learned Arbitrator. The benefit under the Supplementary MoU could only flow to the entity M/s. Brawn Pharmaceuticals Ltd. In the absence of any claim by M/s. Brawn Pharmaceuticals Ltd., the learned Arbitrator could not have allowed the counter claim of the respondent No.1 in his favour. The award to that extent is liable to be set aside. Supreme Court in the case of Bharat Coking Coal Ltd. v. Annapurna Construction [2003 (8) TMI 368 - SUPREME COURT], wherein it was held that the Arbitrator cannot travel beyond the scope/parameters of the contract. Other issues need not be considered - petition allowed.
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