The Supreme Court on Friday took strong exception to an arbitral award asking the South Eastern Railway to pay Rs 1,301 crore to a private firm, saying public money cannot be allowed to go waste like this.
A bench comprising Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra prima facie found fault with the arbitral award of the sole arbitrator and said “Less said the better. As judges we also know a lot of things.”
“I am not happy with the arbitral award. Let the case go before a dispassionate arbitrator and let this be heard again. If Railways lose there… then it is fine. But, the arbitration process cannot be allowed to be handled like this. This is why the arbitration is getting a bad name,” the CJI said.
The public money cannot be allowed to go waste like this, the bench said.
The bench was hearing the plea of the South Eastern Railway against the arbitral award granted in favour of Kolkata-based firm Rashmi Metaliks Limited owing to some contractual dispute.
The top court, which was not inclined to further hear the case, fixed the hearing on Thursday and asked senior advocate Abhishek Singhvi, appearing for the private firm, to get instruction.
The Calcutta High Court had granted an “unconditional stay” on the operation of an arbitration award.
The high court had noted that “there were glaring irregularities”.
“Look at what the high court has observed. We are willing to set aside the order and have a fresh arbitration. We will appoint an arbitrator for this one,” the CJI said.
