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In the construction contract that Mitra Guha had with ONGC, a clause empowered the Superintending Engineer (“SE”) of ONGC to levy compensation if Mitra Guha delayed performance. That clause also set out a mechanism for determining the compensation and specified that the determination would be final.
When disputes arose, Mitra Guha initiated arbitration and got an award in its favour. ONGC’s set-aside application was dismissed. ONGC filed an appeal in which it argued that the decision of the SE in levying compensation/liquidated damages was an excepted matter and not arbitrable. The appellate court accepted the argument and set aside the findings of the arbitrator and the single judge. Mitra Guha went to the Supreme Court.
Accepting on facts that the award was on “excepted matters”, the court made the following decision:
Categories: Arbitrability | Arbitrability of Disputes | Arbitrable Dispute | Excepted Matters | Finality | Finality Clause | Mitra Guha | Non Arbitrable Matters | Nonarbitrability