KESSELS ENGINEERING WORKS PVT. LTD. PRATIK GHOSE vs NEO METALICKS LIMITED — AP-COM/245/2024

Case under Arbitration and Conciliation Act ,1996 Section 34. Disposed: Contested--ALLOWED on 15th May 2026.

CNR: WBCHCO0000052022

CASE DISPOSED

Filing Number

AP /1/2022

Filing Date

03-01-2022

Registration No

AP-COM /245/2024

Registration Date

03-01-2022

Judge

HON'BLE JUSTICE SABYASACHI BHATTACHARYYA

Coram

HON'BLE JUSTICE SABYASACHI BHATTACHARYYA

Bench Type

Single Bench

Category

GROUP B (CIVIL MATTERS) ( 2 )

Sub-Category

Arbitration ( 2 )

Judicial Branch

CURRENT RECORD DEPARTMENT

Decision Date

15th May 2026

Nature of Disposal

Contested--ALLOWED

Acts & Sections

Arbitration and Conciliation Act ,1996 Section 34

Petitioner(s)

KESSELS ENGINEERING WORKS PVT. LTD. PRATIK GHOSE

Respondent(s)

NEO METALICKS LIMITED

Hearing History

Judge: HON'BLE JUSTICE SABYASACHI BHATTACHARYYA

13-01-2022

NEW MOTIONS (SECTION 34)

27-03-2026

PART HEARD MATTERS

20-03-2026

PART HEARD MATTERS

13-03-2026

PART HEARD MATTERS

27-02-2026

PART HEARD MATTERS

Orders

15-05-2026
HON'BLE JUSTICE SABYASACHI BHATTACHARYYA

Court Decision Summary The Calcutta High Court set aside an arbitral award in favor of Kessels Engineering Works Pvt. Ltd. against Neo Metaliks Limited regarding a defective steam turbine generator set. The court found the award violated procedural requirements and contract interpretation principles. Key findings: 1. Procedural violation: The dissenting arbitrator was excluded from deliberations and only informed after the majority award was passed, breaching Section 31(2) of the Arbitration Act requiring reasons for omitted signatures. 2. Contract misinterpretation: The tribunal incorrectly interpreted the guarantee clause to require 18 months of continuous trouble-free operation before "successful commissioning," contradicting the plain contract language and rendering the guarantee period meaningless. 3. Statute violation: Awards for both extinction of price and damages breached Section 59 of the Sale of Goods Act—only one remedy is available per warranty breach. 4. Insufficient evidence: Claimant's damage claims for electricity and diesel lacked cogent proof and proper cross-examination. Result: The court allowed the original equipment supplier's counter-claim for Rs. 38 lakh unpaid balance with interest, while rejecting Neo Metaliks' claims. This case analysis is maintained by casestatus.in based on publicly available court records.

casestatus.in Summary

Court Decision Summary The Calcutta High Court set aside an arbitral award in favor of Kessels Engineering Works Pvt. Ltd. against Neo Metaliks Limited regarding a defective steam turbine generator set. The court found the award violated procedural requirements and contract interpretation principles. Key findings: 1. Procedural violation: The dissenting arbitrator was excluded from deliberations and only informed after the majority award was passed, breaching Section 31(2) of the Arbitration Act requiring reasons for omitted signatures. 2. Contract misinterpretation: The tribunal incorrectly interpreted the guarantee clause to require 18 months of continuous trouble-free operation before "successful commissioning," contradicting the plain contract language and rendering the guarantee period meaningless. 3. Statute violation: Awards for both extinction of price and damages breached Section 59 of the Sale of Goods Act—only one remedy is available per warranty breach. 4. Insufficient evidence: Claimant's damage claims for electricity and diesel lacked cogent proof and proper cross-examination. Result: The court allowed the original equipment supplier's counter-claim for Rs. 38 lakh unpaid balance with interest, while rejecting Neo Metaliks' claims. This case analysis is maintained by casestatus.in based on publicly available court records.

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