NTPC VS M/S DECONAR SERVICES PVT.

LTD
CIVIL APPEAL NO 6483 OF 2014 : 13TH MAY 2021

• FACTS OF THE CASE; The appellant gave two different construction projects to the respondent in a tender which
respondent bought on a 16% rebate scheme on completion of first project. Handing over the sites for construction was
delayed, projects took more than expected time for completion, dispute arose between the two, respondent moved the matter
to the arbitrator and was instantly provided relief in the form of award and interest for both projects.
• MAJOR ISSUES; (i) the refund of the rebate agreed upon by the parties; (ii) grant of escalation; (iii) the cost imposed on
the appellant.
• HIGHER COURTS; The matter was heard under section 30 and 33 of arbitration act of 1940 in Delhi HC and the
arbitrator’s decision was upheld except that the interests were lowered. The decision was also validated in the division bench
of high court under section 39 of the act. The appellant then moved to the apex court. The decision was again taken in favour
of the respondent.
• MAJOR TAKING OF SC’S ORDER; (i) court views could differ from that of arbitrators on the ground of same evidences
but court can’t interfere with the awards, (ii) that court doesn’t sit in appeals over an award passed by the arbitrator except in
the cases where appellant must show that award of arbitration suffered from perversity or an error of law or the arbitrator’s
misconduct.