Authority: High Court at Calcutta, Commercial Division, Appellate Side
Order Date: 2 September 2026
Case Overview
- Appeal No.: AO‑COM 39 of 2026, IA No.: CAN 1 of 2018 (Old No.: CAN 6126 of 2018).
- Parties: Appellant – M/s Balmer Lawrie & Co. Ltd.; Respondent – Ruia Chemicals Pvt. Ltd. & Anr.
- Background: A construction contract was awarded by Balmer Lawrie to Ruia Chemicals. Disputes led to arbitration; the Arbitral Tribunal issued an Award on 11 May 2012, granting a portion of the respondent’s claims and specifying an interest rate.
- The respondent, aggrieved by the Award, filed a petition under Section 34 of the Arbitration & Conciliation Act, 1996. The trial judge, on 8 May 2018, modified the interest component, applying the Micro, Small and Medium Enterprises Development Act, 2006, and awarded compound interest.
- The appellant contended that Section 34 permits only correction of clerical errors and does not allow the court to re‑appreciate evidence or alter the interest rate.
- No representatives appeared for the respondents during the hearing.
Final Outcome
- The Bench (Justices Debangsu Basak and Aryak Dutt) held that the trial judge exceeded the limited powers under Section 34 by changing the interest rate, which is not a clerical error.
- The impugned order dated 8 May 2018 is set aside.
- The arbitration Award dated 11 May 2012 is upheld in its original form, without any modification.
- The appeal (AO‑COM 39 of 2026) and IA No. CAN 1 of 2018 are disposed of without any order as to costs.
Topics: Arbitration, Section 34 Modification Limits