Corporation Of Chennai v. M/S.R.Krishnamurthy & Co.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 24-11-2025
CORAM
THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH Original Petition Nos.518 of 2016 & 666 of 2018 OP.No.518 of 2016 Corporation of Chennai Rep. by Principal Secretary and Commissioner Ripon Buildings Chennai 600 003.
..Petitioner .Vs.
1.M/s.R.Krishnamurthy & Co., No.283/2E, Old No.188B Poonamallee High Road Kilpauk Chennai 600 010.
2.Shri K.D.Arcot Presiding Arbitrator
House No.U-46, Plot No.4185 Anna Nagar, Chennai-600 040.
3.Prof.Dr.D.Thirunakkarasu Co-Arbitrator No.60, Anjugam Nagar, 3 rd Street Ashok Nagar Chennai 600 083.
4.Shri A.Jaganathan Co-Arbitrator No.445, 4 th B Cross, 7 th Main Road RPC Layout, Vijaya Nagar 2 nd Stage Bangalore-560 104.
..Respondents Original Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, to set aside the Award dated 7.4.2016 passed by the Arbitral Tribunal in the matter of Letter of Acceptance dated 5.5.2010 in S.W.D.C.No.B4/2184/2009 and agreement dated 21.5.2010. For Petitioner(s):
Mr.K.V.Ananthakrushnan For Respondent(s):
Mr. P.J.Rishikesh for R1
OP.No.
Greater Chennai Corporation Rep. By Commissioner Ripon Buildings Chennai 600 003. ..Petitioner .Vs.
M/s.R.Krishnamurthy & Co., No.283/2E, Old No.188B Poonamallee High Road Kilpauk Chennai 600 010.
..Respondent Original Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, to set aside the Award dated 12.4.2018 passed by the Arbitral Tribunal in the matter of Letter of Acceptance dated 5.5.2010 in S.W.D.C.No.B4/2184/2009 and agreement dated 21.5.2010. For Petitioner(s):
Mr.K.V.Ananthakrushnan For Respondent(s):
Mr. P.J.Rishikesh for R1 COMMON
ORDER
These Original Petitions have been filed under Section 34 of the Arbitration and Conciliation Act, 1996 [for brevity, hereinafter referred to as
'the Act] against two awards passed by the Sole Arbitrator dated 07.4.2016 and 12.4.2018 respectively.
2.When these petitions were came up for hearing on 11.6.2025, learned counsel appearing on either side submitted that an attempt can be made to resolve the dispute amicably between the parties. Accordingly, an opportunity was given to both sides to resolve the dispute amicably. The matter was also adjourned from time to time.
3.When these petitions were taken up for hearing today, the memo of compromise in both the petitions was placed before this Court and the same has been signed by the parties and their respective counsel. For proper appreciation, the terms of the memo of compromise is extracted hereunder: 6.By Consent of both the parties the awards be settled on the following terms:
a) That the Contractor agrees to receive a Rs. 19,90,00,000/- (RUPPES NINETEEN LAKHS ONLY including, towards full and final settlement including,
(i) Rs.7,21,52,138/- Total value of bill Retention Amount deducted towards the contract agreement dt. 21.5.2010 and Letter of acceptance dated 5.5.2010 in S.W.D.C No.B4/2184/2009, balance payments for the completed works of Rs. 1,75,80,439/- and (ii) Rs. 10,92,67,423/- towards settlement of both Arbitration awards dated 07-04-2016 and 12.4.2018 for the compensation for extended stay, under utilization, additional claims Arbitration Award dated 07-04-2016 against the petitioner for Rs. 29,49,49,468/- with interest at 16% p.a. from 01-03-2016 till realization and challenged by the petitioner in O.P.518 OF 2016 and an Arbitration Award dated 12.4.2018 against the Petitioner for Rs. 22,80,46,191/- with interest at 16% p.a., from 12-04-2018 till realization and challenged by the petitioner in O.P. 666 of 2018.
b) That the Greater Chennai Corporation will pay a sum of Rs.19,90,00,000/- within a period of 6 months from this date of compromise for which Council Resolution has been obtained vide Resolution No.1118/2025, dt.30.10.2025. c) That in the event of default in payment, the Greater Chennai Corporation shall pay interest as per norms from the date of default till the payment date.
d)On payment of the amount the parties shall file Memo and record full satisfaction of the two awards subject matter of the Arbitration and record that all the disputes raised in the matter of letter of acceptance dated 5.5.2010 in S.W.D.C.No.B4/2184/2009 AND Agreement dated 21.5.2010 comes to an end.
e)Both parties have no claim against each other. f)The above referred Awards passed are fully settled on the above terms without cost.
4.In the light of the above development, these Original Petitions are disposed of in terms of the memo of compromise dated 20.11.2025 and the memo of compromise shall form part of the common order. No costs. 24-11-2025 Index:Yes/No Speaking/Non-speaking order Internet:Yes KP
N.ANAND VENKATESH J.
kp Original Petition Nos.518 of 2016 & 666 of 2018
24.11.2025