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During the pendency of the said application, the Madhya Pradesh Re-organisation Act, 2000 came into force. Resultantly, the application moved by the respondent- Company was transferred to the High Court of Chhattisgarh at Bilaspur. With the consent of the parties, an order dated 21st March, 2002 was passed in the said proceeding, appointing a Sole Arbitrator, who was subsequently replaced by another Arbitrator. Vide Arbitral Award dated 17.02.2005, the claim of the respondent- Company was allowed and a sum of Rs.7,43,46,772/- (Rupees Seven Crores forty three lakhs forty six thousand seven hundred seventy two only) was awarded in its favour which included interest at the rate of 18 per cent per annum upto February, 2005 along with future interest at the rate of 18 per cent per annum payable with effect from 1st March, 2005. Aggrieved by the aforesaid Award, the appellant-State filed a petition under Section 34 of the 1996 Act before the District Judge, Raipur. Vide order dated 14th March, 2006, the learned District Judge declined to interfere with the Award except for modifying the same to the extent of the interest awarded in favour of the respondent- Company and making it payable from the date of the notice i.e. 6th December, 1999, instead of, from the date of the Agreement, till 31st December, 1999. The appellant-State assailed the order dated 14th March, 2006 by preferring an appeal under Section 37 of the 1996 Act. The respondent- Company also filed a Cross Appeal being aggrieved by the modification of the Award and reduction of the period of interest awarded in its favour. Several pleas were taken by the appellant-State in the appeal, including the ground of non-joinder of the State of Madhya Pradesh as a necessary party that the respondent-Company never claimed refund of the excess recovery throughout the tenure of both the Agreements and that the respondents claim was barred by limitation. A plea of estoppel was also taken against the respondent-Company. In view of the order dated 30th April, 2010 where under leave was granted in the present petition limited to the issue of disallowance of supervision charges to the tune.
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Text Practice - Time 580 - English

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