LAW FOR ALL

Arbitration - Tenders for supply of Nessie 4 streamers equipped with “Geopoint” Hydrophones of U.S. origin - USA not granted licence - conditions imposed for the replacement - the right to recover liquidated damages as per Clause 16 and for excess engagement of vessel as per Clause 14 of the subject contract. -deducted from its dues a sum of US $ 5,114,300.98 towards excess engagement charges in terms of Clause 14 of the contract. -further deducted a sum of US $ 410,641.20 based on a change in tax law applicable at 4.8% followed by a deduction of a sum of US $ 80,530.10 based on correction for price charges inclusive of income tax at 4.8%.- arbitration dispute - Single judge dismissed the claim - Division bench modified the award - Apex court held that In the result, we allow this appeal but only to the extent that out of the period of 4 months and 22 days which the arbitrators have attributed to the appellant-Corporation a period of 56 days comprising 42 days of the first interval and 14 days of the second referred to in the judgment shall be reduced. Resultantly, deductions made by the appellant-Corporation for the said period of 56 days shall stand affirmed and the award made by the arbitrators modified to that extent with a proportionate reduction in the amount payable to the respondent. No costs.= CIVIL APPEAL NO.3415 OF 2007 Oil & Natural Gas Corporation Ltd. …Appellant Versus Western Geco international Ltd. …Respondent = 2014 - Sept. Part - http://judis.nic.in/supremecourt/filename=41878