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EquityWireSC pulls up govt for filing frivolous plea, junks arbitration case

SC pulls up govt for filing frivolous plea, junks arbitration case

This story was originally published at 20:22 IST on 16 July 2024
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Informist, Tuesday, Jul 16, 2024

 

NEW DELHI – The Supreme Court today pulled up the government for filing frivolous appeals and suggested that it should appoint an outsider to point out the flaws while filing arbitral cases. The apex court was hearing a government petition against an arbitration award to Madhu Transport Company Pvt Ltd.

 

The court dismissed the government's petition against an interim arbitral award which had asked it to pay 84.92 mln rupees to Madhu Transport Company.

 

"I was warning you from the beginning. We knew from day one. Tell me, do you think you had a good chance?" Justice Sanjiv Khanna asked Additional Solicitor General Vikramajit Banerjee, who appeared for the government. 

 

The court said the government should also make their officers party to the issue.

 

The case arises from a 2006 agreement between the government and Madhu Transport Company, under which the government was to procure four rakes for the Indian Railways. A dispute arose between the two parties and the case went into arbitration. In 2022, the arbitral tribunal asked the government to deposit 84.92 mln rupees to Madhu Transport Company for the value of rakes. In January 2023, the high court dismissed the government's challenge to the interim arbitral award, to which it moved the apex court.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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