PANAJI
Nearly four decades after a contract was signed for construction of new Mandovi Bridge, the High Court of Bombay at Goa dismissed an appeal filed by the State government challenging an arbitral award directing it to pay over Rs 2.5 crore with interest to M/s U P State Bridge Corporation Ltd.
In its judgment pronounced on Friday, Justice Suman Shyam upheld the order of the Principal District Judge, North Goa, which had rejected the State’s objections under Section 34 of the Arbitration and Conciliation Act, 1996.
The dispute arose from a contract awarded in 1987 for the construction of the new Mandovi Bridge on NH-17. While the contract agreement was signed on February 21, 1987, the Bridge was opened for public on July 23, 1992. However, the span 11 of the bridge collapsed on October 14, 1990 during construction.
During the execution of the project, disputes surfaced between the parties and were referred to a three-member arbitral tribunal as per the arbitration clause in the agreement.
The tribunal passed an award on August 8, 1997, directing the State to pay over Rs 1.31 crore towards claims and Rs 1.20 crore towards interest up to the date of the award, along with further interest at 18 percent. The tribunal also issued directions regarding an insurance claim and return of bank guarantees.
The State’s objections to the award were dismissed as time-barred by the Principal District Judge in 2001, and the dismissal was upheld by the High Court. After intervention by the Supreme Court in related proceedings, the matter was revived and eventually decided on merits by the Principal District Judge in 2016, rejecting the State’s challenge.
Holding that no ground was made out to interfere with the award or the order of the Principal District Judge, the High Court dismissed the appeal in a 29-page order.
