Madras HC sets aside Tribunal award on BSNL claims for ISHA foundation

The Madras HC has set aside an Arbitrator award given in favour of Isha Foundation, where it allowed the organisation to pay Rs 44,000, as against BSNL's bill claim of around Rs 2.50 crore

The Madras High Court has set aside an Arbitrator award given in favour of Coimbatore-based Isha Foundation, where it allowed the organisation to pay Rs 44,000, as against BSNL's bill claim of around Rs 2.50 crore.

The HC also allowed the state-owned telecom operator to go for arbitration proceedings again.

ISHA had earlier moved the court against BSNL's claim statement for recovery of an aggregate sum of Rs 2,50,47,462 towards the value of two invoices generated for December 2018 and January 2019, and it was disposed of by appointing a sole arbitrator.

The tribunal later concluded that Isha has to pay Rs 22,000 each for the two relevant months in the respective years.

"This conclusion was consequential to the conclusion that the CDRs (Call Data Records) are unreliable. In view of the above conclusion that the findings of the Arbitral Tribunal are patently erroneous, the consequential direction to pay Rs 44,000 with interest thereon does not survive," Justice Senthilkumar Ramamoorthy said.

"In the result, the Award is set aside. As a corollary, the petitioners are granted leave to institute de novo arbitration proceedings. If such proceedings are instituted, the petitioners shall be entitled to the benefit of Section 43(4) of the Arbitration Act..." he said.