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Showing posts from March, 2023

Facts 7:

1. That the contents of para 1 of the Grounds of appeal are denied as the award in question has been passed after consideration of all the submissions made by Appellant as well as Respondent. 2. That, the contents of Para 2 of the grounds of the Appeal are denied being incorrect. The work of the Respondent was stopped by the officials of the Appellant on 05.05.2016 and vide letter dated 09.05.2016, the Respondent informed the Appellant to sort out the matter as soon as possible so that the work can be resumed. It was also stated in the letter that the Respondent shall not be held liable for any delay caused due to conduct of the Bank Officials. At this juncture it becomes pertinent to mention here that the construction work of the Respondent was stopped by the Appellant Officials due to use of different Brands of Building Material as mentioned in the tender documents and in this regard a letter dated 18.04.2016 was issued by the Project Architect of the Appellant to the Respondent aski...

Facts 6:

2. That, Clause 27 of the agreement dated 25.03.2016 stipulates that the contractor must acquire the approval of bank for any change in material.  3. That, the work of construction was started by the Respondent within 10 days from the receipt of the work order but, on 05.05.2016, the work was stopped by some officers of the Appellant. The Respondent vide letter dated 09.05.2016 informed the Appellant that some officers of the Appellant have directed the Respondent to stop the ongoing construction work and the Respondent had to stop the same. By virtue of the letter dated 09.05.2016, the Respondent requested the Appellant to sought out the matter at the earliest so that the work of construction can be resumed. Similar requests were made by the Appellant vide letters dated 18.05.2016 and 02.06.2016 subsequent to which the Project Architect vide letter dated 13.06.2016 directed the Respondent to start the construction work along with additional work of providing laying of underground ...

Fact 5:

That, the appellant floated a tender for construction of additional 20 hostel rooms at Union Bank of India, Staff Training Centre, Area Hills ,Bhopal and the appellant accepted the bid of respondent and both parties entered into the agreement on 25/03/2016. The respondent deposited the security amount of Rs  1,42,800 and subsequently, the tender was awarded in favour of respondent on 27/10/2016.

Fact 4:

That the present appeal is also amenable to be dismissed that the grounds set forth by Appellant will not come under the ambit of provisions enumerated under section 34 of Arbitration and Conciliation Act, 1996 and there exists no prima facie case against the respondent in the instant appeal.

Fact 3:

3. That the present appeal is liable to be dismissed on the ground that the appellant in question has not paid the fees of an arbitrator appointed by them. The casual attitude of Appellant towards the arbitral tribunal reflects that Appellant is continuously misusing the process of law and has approached the honourable court with the malafide intention of causing distress to the respondent, and thus the present appeal is liable to be dismissed.  

Fact 2:

That the present appeal is also liable to be dismissed on the ground that the award given by arbitration tribunal was not final and had may errors for which the application of correction was filed under section 33 of Arbitration and Conciliation Act,  1996. Since the corrections will change the substantial nature of award  and therefore, the present appeal is liable to be dismissed being premature.    

Fact 1:

The present appeal is worthy of dismissal on the sole ground that the cause of title is correct and it has been mentioned in present appeal filed under section 34 of M.P Arbitration and Conciliation Act, 1983 and Central Arbitration and Conciliation Act,  1996. The authenticity of the cause of appeal can be easily ascertained by the wrong cause of an appeal and thus the present appeal deserves to be dismissed.

Q: Discuss Section 34 of Arbitration and Conciliation Act, 1996 ?

Ans: Section 34 of Arbitration and Conciliation Act,  1996 mentions about an application for setting aside arbitral award. (1) Recourse to a Court against an arbitral award may be made only by an application for setting aside such award in accordance with sub-section (2) and sub-section (3). (2) An arbitral award may be set aside by the Court only if— (a) the party making the application furnishes proof that— (i) a party was under some incapacity, or (ii) the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law for the time being in force; or (iii) the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or (iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the sc...

Q: Discuss Section 32 of Arbitration and Conciliation Act, 1996 ?

Ans: Section 32 of Arbitration and Conciliation Act mentions about Termination of proceedings:  (1) The arbitral proceedings shall be terminated by the final arbitral award or by an order of the arbitral tribunal under sub-section (2). (2) The arbitral tribunal shall issue an order for the termination of the arbitral proceedings where— (a) the claimant withdraws his claim, unless the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the dispute. It means that both claimant and respondent shall be agreed to withdraw the claim. (b) the parties agree on the termination of the proceedings, or (c) the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible. (3) Subject to section 33 and sub-section (4) of section 34, the mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings.

Q: Discuss Section 33 of Arbitration and Conciliation Act, 1996 ?

Ans: Section 33 of Arbitration and Conciliation act mentions about Correction and interpretation of award:  (1) Section 33(1) mentions that within thirty days from the receipt of the arbitral award, unless another period of time has been agreed upon by the parties— (a) a party, with notice to the other party, may request the arbitral tribunal to correct any computation errors or any clerical or typographical errors or any other errors of a similar nature occurring in the award. (b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award if it is not understood by the party.  (2) If the arbitral tribunal considers the request made under sub-section (1) to be justified, it shall make the correction or give the interpretation within thirty days from the receipt of the request and the interpretation shall form part of the arbitral award. (3)...

Q: Can the cheque be bounced due to mismatch of signature ?

Ans: The signature mismatches a lot of times in the case of cheques. The bank dishonors a cheque if they find that the signature is mismatched. It is quite common to forget your signature and hence people end up putting the wrong signature on the cheque leaf. Hence, it is mismatched from the signature kept in the bank records. The bank will swiftly reject the cheque and it will bounce because of a mismatch of signatures. Hence, a person should carefully sign the cheque. 

Q: Can the cheque be bounced due to wrong date ?

Ans: Yes, a cheque can be bounced due to wrong date. It is a common occurrence of cheque bounce because most people pay attention while writing the amount in words and numerical.

Q: Is bouncing of cheque a bailable offence ?

Ans: The cheque bouncing is a criminal offence and a person can be arrested by police in cheque bouncing. However, it is significant to note that the police can not arrest a person in cheque bouncing without warrant. The crime of cheque bouncing is a bailable offence.   In a scenario of multiple cheque bouncing cases, a person can be accused of the crime of cheating under section 420 of Indian Penal Code. The crime is non-bailable offence.

Q: Is wrong date may be a reason of cheque bounce ?

Ans: It is quite crucial to write the correct date on the cheque slip. If you write a scribbled number that can’t be read or the wrong date, the cheque will get bounced. In addition to it, if the drawer mentions a date that is over three months old, the banks can then dishonor the cheque. If the cheque was post-dated but the payee submitted it before to get the money, it will get bounced. 

Q: Is bouncing of cheque a criminal offence?

Ans: According to Section 138 of the Negotiable Instruments Act ,  a cheque will bounce if there are insufficient funds in the bank, if there is a discrepancy in the signature, etc. Cheque bouncing is a criminal offence in India as well as a person could get imprisoned for up to 2 years and would need to pay twice the amount stated in the dishonored cheque. In addition to it, in Section 143A, it is quite clear that an interim compensation can be given to the complainant for the issues caused due to the Cheque Bounce.

Q: What do we mean by default of contractor ?

Ans: A default is a negligence to fulfill an obligation. Defaulting is most common in regards to debtor-creditor law and contract law. Typically, a default would lead to judicial proceedings or triggers an application of a separate contract provision. In perspective of construction law, contractor default litigation arises when a contractor breaches their contract with the owner, usually by failing to accomplish the work or meet other contractual obligations. This can leave the owner in a difficult position, as the owner may be left with an unfinished project and no recourse against the contractor. There are a few options available to owners in this situation. They can try to find another contractor to complete the work or can sue the defaulting contractor, or do both. This can be a difficult task, as construction contracts are often complex documents.