HC sets aside HCC's arbitral award against GAIL
The PSU had moved the court challenging the award of an arbitrator which asked it to pay more to HCC despite the final settlement of the claim.
In a relief to GAIL (India) Ltd, the Delhi High Court on Monday set aside an arbitral award against it saying Hindustan Construction Corporation (HCC), which was assigned a job by the PSU major, was not "coerced" to give a no-claim certificate (NCC) at the time of final payment.
"The Arbitrator failed to notice that HCC had not issued the NCC under coercion or duress. The NCC issued by HCC to GAIL constituted 'accord and satisfaction' of HCC's claims and there was, therefore, no arbitrable dispute," Justice S Muralidhar said while allowing the plea of the gas major.
"This court sets aside the impugned award dated August 11, 2003. The petition is allowed with costs of Rs 5,000 which should be paid by HCC to GAIL within a period of four weeks from today," Justice Muralidhar said.
The PSU had moved the court challenging the award of an arbitrator which asked it to pay more to HCC despite the final settlement of the claim.
GAIL, in 1994, awarded HCC a contract for up-gradation of Auraiya Gas Compressor Station for HBJ Pipeline.
HCC, which settled the payment dispute with GAIL after giving NCC, however, later invoked the arbitration clause and got an award in its favour with the panel holding in 2003 that the NCC was obtained under "coercion and duress".
Citing the apex court's judgements, the HC said "the correspondence shows that the two parties were in negotiation as regards the settlement of the final bill and there was no compulsion on HCC, much less any coercion, to issue an NCC."
"The contractor had, after signing on the final bill, without any protest or reservation waived its right to raise a further claim and therefore there was no live dispute between the parties that could be referred to arbitration," it said.