CHENNAI: The Madras High Court has set aside an order of the arbitral tribunal, awarding payment of Rs 38 lakh, to the road contractors under the head of overhead charges and profit on account of the contract. Partly allowing an appeal from the State Highways Project Circle, Justice PT Asha on February 6 held that the award of the arbitrator under this head for the said amount, is erroneous and liable to be set aside.
The award is a patent illegality in as much as the Arbitrator has not considered the issue of limitation, which is evident on the face of the record. It is confirmed with reference to the interest granted on the delayed payment of money to the contract, the judge added.
As against the bill raised on January 30, 2000, by A Rangasamy and three other contractors, the final payment was made by the Highways Project Circle in Thanjavur and Divisional Engineer in Trichy, only on March 4, 2003.
The contractors moved the Arbitral tribunal, which awarded Rs 47.57 lakh towards compensation for loss of overhead charges and profit on account of the contract being delayed. Challenging this, the Highways moved the High Court.