Decided by: RV Raveendran & KS Radhakrishnan. JJ
On: 15th April 2010
Amaravati entered into a contract with United India in 1976 for insuring against losses due to acts or omissions of Amaravati's employees.Disputes arose between Amaravati and United India regarding the quantum of reimbursable loss to be paid by United India to Amaravati.Amaravati appointed the sole arbitrator for resolution of the dispute. However, United India did not participate in the arbitration proceedings even after due notice of the arbitration. Hence, the arbitrator granted an ex parte award in favour of Amaravati in August 1983.
In January 1984, United India challenged the arbitrator's award under S 30 of the Arbitration Act, 1940. In June 1990, the civil court dismissed the petition for setting aside. On appeal, the High Court of Bombay allowed the appeal in February 2008.The Supreme Court has dismissed the appeal and has confirmed the judgement of the High Court.
Thus, the dispute has finally been adjudicated upon after more than a quarter century from when it arose. And the courts in India have the audacity to blame the finely crafted Arbitration and Conciliation Act, 1996 for 'loopholes', ambiguities' and what not!