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Patna High Court

M/s. Ganesh Foundry and Castings Limited,versusThe Bihar State Electricity Board (now M/s. Bihar State Power (Holding) Company Limited),

Decided
Disposal
DISMISSED

Holding

The High Court held that the arbitral tribunal’s additional award merely corrected a clerical inconsistency within the ambit of Section 33, and therefore the appeal challenging it under Section 34 fails.

Summary

The appellant, a steel manufacturing company, had its electricity supply disconnected after a surprise inspection alleged theft of electricity. The dispute was referred to arbitration, resulting in an award on 4 Oct 1998. The respondent later filed a Section 33 application seeking correction of what it claimed were contradictory directions in the award, leading to an additional award on 1 Dec 1998. The appellant challenged the additional award under Section 34, but the Commercial Court dismissed the challenge, finding no patent illegality. On appeal, the High Court examined whether the Section 33 application fell within the statutory scope of correcting clerical or computational errors, and concluded that the arbitral tribunal merely corrected a clerical inconsistency, which is permissible. Consequently, the appeal was dismissed and the additional award upheld.

Issues considered

  • Whether an application under Section 33 of the Arbitration and Conciliation Act, 1996 for correction or interpretation of an arbitral award is permissible when the alleged error relates to contradictory directions rather than a mere clerical or computational mistake.
  • Whether the additional award dated 01‑Dec‑1998 can be set aside under Section 34 on the ground of patent illegality or perversity.
  • Whether the direction in the original award concerning the basis of billing was contradictory and required correction under Section 33.
  • The extent of the arbitral tribunal’s power to modify an award versus the court’s limited power under Section 34.

Legislation cited

Subjects

  • Arbitration
  • Section 33
  • Section 34
  • Award correction
  • Electricity theft
  • Tariff calculation
  • Commercial Court
  • Additional award
  • Clerical error

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                       COMMERCIAL APPEAL No.6 of 2025
     ======================================================
     M/s. Ganesh Foundry and Castings Limited, a Public Limited Company
     having its registered Office at Laxmi Narain Road, Muzaffarpur and its
     Manufacturing Unit at Sipahpur, Muzaffarpur through its Director, Sri Shyam
     Sundar Bajoria, aged about 51 years (Male), son of Om Prakash Bajoria,
     resident of Sikandarpur, Near Rani Sati Mandir, Muzaffarpur, P.S.
     Muzaffarpur Sadar, District Muzaffarpur.                  ... ... Appellant
                                       Versus
1.    The Bihar State Electricity Board (now M/s. Bihar State Power (Holding)
      Company Limited), Vidyut Bhavan, Bailey Road, Patna, through its
      Chairman.
2.   The Member (Technical), Bihar State Electricity Board (Holding) Company
     (now M/s. Bihar State Power Limited), Vidyut Bhavan, Bailey Road, Patna
3.   The Chief Engineer-cum-Senior Electric Inspector, Department of Energy,
     Government of Bihar, Patna.
4.   The General Manager-cum-Chief Engineer, Tirhut Area Electricity Board,
     (now North Bihar Power Distribution Company Limited), Muzaffarpur.
5.    The Electrical Superintending Engineer, Bihar State Electricity Board (now
      M/s. Bihar State Power (Holding) Company Limited.), Electric Supply
      Circle, Muzaffarpur.
                                                               ... ... Respondents
     ======================================================
     Appearance :
     For the Appellant     :       Mr. Suraj Samdarshi, Advocate
                                   Mr. Avinash Shekhar, Advocate
                                   Ms. Simran Kumari, Advocate
                                   Ms. Abhilasha Jha, Advocate
     For the Respondents   :       Mr. Kunal Tiwary, Advocate
                                   Mr. Vivek Prasad, Advocate
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
             and
             HONOURABLE MR. JUSTICE KUMAR MANISH
     CAV JUDGMENT
     (Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)
      Date : 22-06-2026


                 Challenge in the present appeal is to the order dated

     20.05.2025 passed by learned Principal District Judge, Patna

     (hereinafter referred to as the ‘learned PDJ’ or the ‘Commercial

     Court’), in Miscellaneous (Arbitration) Case No. 08/1999,

     whereby and whereunder the application filed by the appellant
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       under Section 34 of the Arbitration and Conciliation Act, 1996 (as

       amended up to date and hereinafter called the ‘Act of 1996’)

       challenging the additional award dated 01.12.1998 passed under

       Section 33 of the Act of 1996, has been dismissed.

                   Brief Facts of the Case

                   2. The appellant in the present case is a public limited

       company registered under the provisions of the Companies Act,

       1956. It is engaged in the business of production of iron and steel

       ingots, billets, rods, etc., in its factory at Ahiyapur in the district of

       Muzaffarpur. For the purpose of running its factory, the appellant

       had applied for grant of electricity connection with the respondent

       and the respondent executed an agreement dated 06.10.1998 for

       supply of electricity with contract demand of 1500 KVA with

       effect from 02.04.1990. The officers of the respondents conducted

       a surprise inspection in the factory premises of the appellant.

       Various irregularities were noticed and there was alleged theft of

       electricity, the electricity supply in the factory of the appellant was

       immediately disconnected by the respondent and a First

       Information Report alleging theft of electricity was also lodged.

       The appellant challenged this action of the respondent in the High

       Court of Judicature at Patna in its Civil Writ Jurisdiction. CWJC

       No. 6175 of 1995 was registered. On record, there is no further
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       information about the said theft case. The main prayer of the writ

       petitioner was for a direction to restore the electricity connection.

                   3. It is stated that the Hon’ble Court vide order dated

       22.01.1996 passed in CWJC No. 6175 of 1995 remanded the

       matter back to the respondent regarding billing and restoration of

       electricity connection but no step was taken by the respondents. It

       is further stated that this Court vide order dated 28.02.1996

       directed the Chairman of the Board to take a decision within the

       time fixed by the Hon’ble Court. The Chairman passed an order

       dated 15.05.1996 after considering the two experts’ reports. A

       supplementary energy bill dated 13.09.1995 amounting to Rs.

       39,41,61,040/- was raised, as the respondent refused to restore the

       electricity supply to the appellant, the appellant, being aggrieved

       by the order dated 15.05.1996 passed by the respondent Chairman

       of the erstwhile Electricity Board, preferred a fresh writ

       application being CWJC No. 5812 of 1996 seeking quashing of the

       order dated 15.05.1996.

                   4. In the third round of litigation in CWJC No. 5812 of

       1996, with the consent of the parties, the Hon’ble High Court

       referred the subject matter of the writ application to an Arbitral

       Tribunal comprising Hon’ble Mr. Justice P.S. Sahay, a former

       Judge of this Court. The learned Arbitrator was to be assisted by
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       two technical experts. Shri Umesh Chandra Verma, Head of the

       Department of Electrical Engineer, MIT Muzaffarpur was a

       nominee of the appellant whereas Shri Bindeshwari Prasad Singha

       (in short ‘B.P. Singha’) (Member-Distribution Retired) was

       nominee of the respondent. The parties agreed that the arbitral

       proceedings shall be governed by the provisions of the Act of

       1996.

                   5. In course of the arbitration proceeding, the learned

       Arbitral Tribunal framed as many as six issues for adjudication,

       which are as follows:-

                              “(i) Capacity of the Transformer duly sanctioned by
                              the authority of Electricity Department as on the
                              date of raid was done,
                              (ii) Capacity of Transformer as found on the date of
                              raid,
                              (iii) Whether the load of Transformer will have
                              relevance or connection while calculating the Tariff,
                              (iv) What should be the rate of Tariff to be realized
                              from the company by the Board and which of the
                              provisions of Tariff will apply to the instant case,
                              (v) What should be the period and from what date
                              the Board is entitled to realize the bill, and
                              (vi)    Whether    the   Board     was    justified    in
                              disconnecting the power to the appellant.”
                   6. After taking into consideration the materials available

       on the record, the learned Arbitral Tribunal recorded in its

       concluding paragraph as under:-
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                              “(i) 1500 KVA demand of power will be chargeable
                              from the date of electricity connection, i.e.
                              02.04.1990 to 31.07.1995, as per the first agreement,
                              (ii) 2500 KVA (1500 KVA + 1000 KVA) demand of
                              power will be chargeable from 01.08.1995 to
                              03.08.1995 (3 days), as per the first and second
                              agreements,
                              (iii) Additional demand of 2676 KVA will be
                              chargeable for a period of 177 days (i.e. first part of
                              180 days),
                              (iv) Additional demand of 1676 KVA will be
                              chargeable for the last period of 3 days (i.e. the
                              second part of 180 days),
                              (v) Energy (KWH) will be calculated according to
                              clause 15.2 (b) (ii) of the Tariff on special terms and
                              conditions of supply wherein load factor of 30% and
                              power factor of 85% are stated,
                              (vi) Board will charge any other amount remaining
                              unpaid so far according to the Tariff imposed at the
                              time viz. annual minimum guarantee, etc.”


                   7. It is the contention of the appellant that the learned

       Arbitral Tribunal had passed the award dated 04.10.1998 by

       relying upon the reports of the two experts, namely Mr. Verma and

       Mr. Singha. There was no ambiguity or error of any nature, either

       clerical or arithmetical and there was no requirement of

       interpretation of any part of the award as according to the

       appellant the award was complete in all respect and binding on the

       parties.
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       Developments subsequent to the award dated 04.10.1998

       (referred to as the ‘original award’)

                   8. The appellant did not challenge the original award

       dated 04.10.1998 and admittedly they decided to settle the dispute

       by accepting the award but the respondent company preferred an

       application under Section 33 of the Act of 1996 on 05.11.1998

       before the learned Arbitral Tribunal. A copy of the application

       dated 05.11.1998 seeking correction in the original award has been

       enclosed as Annexure ‘P-2’. It is the case of the respondent that on

       page ‘29’ and ‘30’ of the award, the learned Arbitrator had given a

       direction after holding that Clause ‘16.9’ of the tariff is applicable

       but in the last portion of the award, the direction to draw fresh bill

       is not in consonance with the directions already issued in the

       earlier part of the original award. It is stated in the application

       under Section 33 of the Act of 1996 that the two directions in the

       award are almost contradictory, hence, they would require an

       interpretation so as to correct the computation errors which has

       cropped in as a result of direction no. 1 on page 32 of the original

       award.

                   9. It is contended on behalf of the respondents in the

       application under Section 33 of the Act of 1996 that as per

       directions given at page ‘29’ and ‘30’ of the award, the term ‘Load’
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       (L) of 86.9 has to be taken as the total capacity of transformer

       tested and found in the laboratories of MIT and CRITL

       immediately after the raid but at page ‘32’ in direction (i), the

       Board has been directed to charge ‘L’ on the basis of contract

       demand. It is also stated that in the award that learned Arbitrator

       had held that the excess capacity of the transformer will amount to

       theft of electricity energy. The respondents contended that due to

       the aforesaid two directions, an error in computation is coming. On

       the very face of the record, direction at page ‘32’ appears to be an

       error. At the same time, it is also not in consonance with the

       findings arrived at by the learned Arbitrators at page ‘29’ and ‘30’

       of the award.

                   10. The respondents contended that at page ‘32’ of the

       award, the specific direction in the last portion, as to how it is to be

       calculated is creating confusion in coming to correct computation

       errors.

                   11. The application further stated that for the purposes of

       computing the period of theft, the Board has filed the documents

       showing the consumption of energy vis-a-vis the production of the

       consumption of energy on the basis of per MT billet and taking

       that difference, the Board has calculated the period and these

       documents have not even been looked into by the learned
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       Arbitrator while giving the award and while computing on the

       formula of clause 16.9.

    Opposition to the application under Section 33 of the Act of 1996

                   12. The application under Section 33 of the Act of 1996

       was opposed by the appellant. It was contended that the prayer

       made and the issues raised in the application dated 05.11.1998 is

       beyond the scope and ambit of Section 33(1) of the Act of 1996.

       The respondents contended that there is no contradiction in the

       award and there is no requirement of any correction.

                   13. The learned Arbitral Tribunal considered the rival

       submissions and passed an additional award dated 01.12.1998. A

       copy of the additional award dated 01.12.1998 has been brought

       on record as Annexure ‘P-4’ to the memorandum of appeal. The

       learned Tribunal allowed the application under Section 33(1) of

       the Act of 1996. The direction given in the original award at page

       ‘32’ has been modified.

                   14. Being aggrieved and dissatisfied with the additional

       award (Annexure ‘P/4’), the appellant preferred an application

       under Section 34 of the Act of 1996 challenging the additional

       award. The learned Principal District Judge, Patna, being the

       Commercial Court duly constituted under Section 3 of the

       Commercial Court Act, 2015, entertained, heard and disposed of
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       the application by refusing to interfere with the additional award.

       According to the learned Commercial Court, the appellant was not

       able to make out the elements of any of the grounds mentioned in

       sub-section (2) or sub-section (2A) of Section 34 of the Act of

       1996. The learned Court held that the limited and extremely

       circumscribed jurisdiction of the court under Section 34 of the Act

       is not getting satisfied in this case in order to set aside the

       impugned award. The Court held that the Arbitral Tribunal had

       decided the dispute within the four corners of the agreement and

       documents provided thereto between the parties and the technical

       reports and the findings are clear. No patent illegality or absurdity

       or perversity could be found in the additional award. This

       additional award came to be challenged before the learned

       Commercial Court, Patna presided over by the Principal District

       Judge by way of an application under Section 34 of the Act of

       1996. The learned Commercial Court has vide the impugned order

       dated 20.05.2025 refused to allow the application. No patent

       illegality could be found in the additional award. The appellant has

       challenged the additional award as well as the order of the learned

       Commercial Court, Patna in the present appeal.
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                   Submissions on behalf of the appellant

                   15. Mr. Suraj Samdarshi, learned counsel for the

       appellant, has submitted that the Hon’ble Supreme Court has been

       pleased to hold that the court acting under Section 34 and Section

       37 of the Act of 1996 has ample power to set aside an award which

       suffers from patent illegality. It is submitted that power to set aside

       the award includes the power to modify if the award is severable to

       the extent modification is required. Learned counsel relies upon

       the judgment of the Hon’ble Supreme Court in the case of Gayatri

       Balasamy vs. ISG Novasoft Technologies Limitedreported in

       (2025) 7 SCC 1.

                   16. It is submitted that the original award despite having

       not been prepared strictly in terms of the tariff of 1993, was

       accepted by the appellant in order to settle the dispute. The

       appellant did not challenge the award with sole intent that the

       dispute will come to an end. The Power Company filed a petition

       under Section 33 of the Act of 1996 (Annexure ‘P-2’) which was

       not for rectification or correction of any typographical error rather

       the company sought clarification and interpretation of the award.

       The submission is that the petition (Annexure ‘P-2’) was beyond

       the scope of Section 33 of the Act of 1996.
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                   17. Learned counsel submits that the primary thrust of

       the application under Section 33 was the contradiction in the

       award at page ‘29’ and ‘30’ thereof. It is submitted that at page

       ‘29’, the learned Arbitrator in complete agreement with Mr

       Singha’s report confirmed that the calculation has to be done for:-

                              (i) 177 days prior to 31.07.1995 at sanctioned load
                              1500 KVA and transformer capacity at 2250 KVA
                              and
                              (ii) for three days i.e. 01.08.1995 to 04.08.1995 for
                              sanctioned load of 2500 KVA and transformer
                              capacity at 3750 KVA.


                   18. It is submitted that the learned Arbitrator

       categorically observed while rejecting the stand of the expert

       namely Mr. Verma who was representing appellant and said that

       further calculation made my Mr. Singha is to be adopted which is

       manifest from the opening paragraph at page ‘30’ of the award.

       Mr. Singha’s finding with regard to unauthorised extraction is at

       page ‘54’ to ‘56’ and summary has been culled out at page ‘62’ of

       the award.

                   19. It is submitted that the total transformer capacity was

       6265 KVA as per the test lab, the report of Mr. Singha and report

       of Mr. Verma. The mode of calculation for additional chargeable

       demand based on the transformer capacity has been culled out by

       Mr. Singha in accordance with the Tariff 1993 which is manifest
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       from page ‘55-56’ of the award, which is Mr. Singha’s report

       exclusively. Since a consumer is entitled to have transformer 150%

       of the contract demand, by back calculation Mr Singha arrived at

       the contract demand that consumer could have, which was

       calculated at 4176 KVA. Since 150% of 4176 comes to 6264 KVA,

       therefore the additional chargeable demand which the consumer

       could have availed unauthorisedly was calculated as 4176 KVA

       less 1500 KVA (4176-1500= 2726). 1500 KVA was deducted, as

       the consumer was having sanctioned contract demand of 1500

       KVA during 177 days. Thus, it is submitted that the additional

       chargeable demand was arrived at by Mr. Singha for the purposes

       of calculation at 2726 KVA for 177 days. Similarly, for three days

       when sanctioned contract demand was 2500 KVA, the back

       calculation of additional contract demand has been taken as 4176

       KVA less 2500 KVA (4176- 2500 KVA = 1676 KVA) as the

       sanctioned contract demand for three days was 2500KVA. This

       fact is further reiterated by Mr. Singha in his report by way of

       summary which is at page ‘62’ of the award and more specifically

       serial 3 and 4, thereof.

                   20. It is submitted that the learned Arbitrator has

       directed the Board to prepare fresh bills on the basis of the

       findings and directions. The finding was on the basis of Mr.
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       Singha’s report and the additional demand for 177 days for 2677

       KVA (it should be 2676 KVA). It was thus contended that there

       was no contradiction which the Board pointed out.

                   21. Learned counsel submits that Section 33 is a narrow

       provision limited to correction of clerical, typographical and

       computational error. It does not permit substantive review or

       modification so far as interpretation is concerned. It is only upon

       agreement between the parties, such request can be made to

       Arbitrator with regard to interpretation of a specific point of the

       award. In absence of such agreement, there cannot be any

       interpretation and the scope of Section 33 is limited to correction

       of clerical, typographical and computational errors only.

                   22. Learned counsel submits that a non-reasoned

       additional award that too without taking assistance of the technical

       experts in the given set of facts and in particular contrary to the

       provisions of the tariff is liable to be set aside. It is submitted that

       there is a distinction between Section 33 and 34 of the Act of 1996.

       Section 33 provides for provides for correction and interpretation

       of awards by the Arbitral Tribunal itself for computational, clerical

       or typographical errors, or for making additional awards for

       omitted claims, within 30 days. Section 34, on the other hand,

       deals with setting aside awards on limited grounds and does not
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       permit a general modification of the award on merits. The

       application under Section 33 is also time-bound. On these grounds,

       learned counsel for the appellant has submitted that the learned

       Commercial Court, Patna failed to appreciate that the additional

       award suffered from patent illegality being beyond the scope of

       Section 33 of the Act of 1996.

                   Stand of the Respondents

                   23. The appeal has been contested by learned counsel

       for the respondents. Learned counsel has pointed out that some

       clerical error occurred while passing the main award dated

       04.10.1998. The main award was passed after taking into

       consideration the reports of two technical experts appointed for

       assisting the learned Arbitrator. It is submitted that none of the

       ingredients of Section 34(2) or 34(2A) is present. The learned

       Commercial Court has, therefore, rightly dismissed the application

       under Section 34 of the Act of 1996.

                   24. It is further submitted that the original award has

       been accepted by the appellant and, therefore, the findings

       contained therein have attained finality. Only in the last portion of

       the original award a mistake in the nature of clerical error

       occurred. In fact a direction to draw fresh bill on the basis

       discussed by the learned Arbitral Tribunal was already given at
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       page ‘30’ of the award, therefore in last portion, the direction to

       draw the fresh bill could not have gone differently. It was only a

       mistake and correction of the same without touching the findings

       and reasonings would be permissible.

                   Consideration

                   25. Having heard learned counsel for the parties and on

       perusal of the records, this Court finds that the solitary issue which

       arises for consideration in this case is as to whether the application

       under Section 33 of the Act of 1996 preferred by the respondents

       (Annexure ‘P/2’) would fit in within the scope of Section 33 of the

       Act of 1996. It is an admitted position that the findings recorded

       by the learned Tribunal in the original award have been accepted

       by the appellant as no application for setting aside the said award

       was ever preferred. At this stage, we would briefly take note of

       some of the relevant provisions of the agreement between the

       parties. It is this agreement which contains the basis of calculating

       the tariff and the period when there is a load factor as have been

       found by the two independent agencies. Clause ‘16.4’, ‘16.5’ and

       ‘16.9’ of the agreement read as under:-

                              “16.4.Transformer     capacity,   the   transformer
                              capacity of HT and EHT consumers shall not be
                              more than 100% of the contract demand.
                              16.5. Surcharge for exceeding the contract
                              demand
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                              If during any month in a financial year (April to
                              March next) the actual maximum demand of a
                              consumer exceeds 110% of the contract demand,
                              then the highest demand so recorded shall be
                              treated as the contract demand for that financial
                              year and the minimum base charges, both in respect
                              of maximum demand and energy charge shall be
                              payable on that basis.
                              16.9 Detection of unauthorized load
                              If at any time, the consumer is found exceeding the
                              contracted load without specific permission of the
                              Board, the Board may without prejudice to its other
                              rights under the agreement or under the provisions
                              of the Electricity Act, estimate the value of the
                              electrical energy. So extracted, consumed or used
                              shall be calculated as below and may also
                              disconnect the supply without notice:
                              I. Necessary assessment for compensation in the
                              following malpractise and theft of energy cases
                              shall be made as below:
                              (a) In case of use of energy through artificial means
                              or by adopting any appliance
                              (b) In case of using energy by creating obstruction
                              in running of meters
                              Or interfering with the system of supply or wires
                              etc.
                              (c) In case of dishonest obstruction of electrical
                              energy or running of energy when supply is
                              disconnected.
                              The formula given is as follows:-
                              Units Assessed = L X H X H X D
                              L = is the connected load in KW.
                              H = is the average number of hours per day if
                              supply is made available distribution mains feeding
                              the consumer.
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                              D = is the number of days for which the pilferage
                              took place which can be established from
                              production     of   satisfactory   evidence   by   the
                              consumer. In case there is no possible evidence to
                              establish the period, this factor be taken equivalent
                              to 180 or the number of days elapsed from the date
                              on connection/ installation of meter till the date
                              detention of pilferage which is less.
                              F = is the Denotes the factors for the categories
                              noted below:
                              1. For Domestic : F=0.20
                              2. For commercial : F=0.40
                              3. For small and medium up to 75 KW : F=0.50
                              4. For large and heavy with load above 75 KW :
                              F=0.75”


                   26. Having considered the aforementioned clauses of the

       agreement, the learned Arbitrator held that in a case where a

       company has permissible load of 1000 KVA but it has utilised

       5000 KVA then clause ‘16.9’ will be attracted and the

       methodology of realising tariff mentioned in clause ‘16.9’ is meant

       to charge those customers who utilise extra load without the

       sanction of the Board.

                   27. The learned Arbitrator held that in this case the

       Board is empowered to charge the tariff on the basis of the test

       reports submitted by the independent bodies. The learned Tribunal

       rejected the challenge made on behalf of the appellant to the

       correctness of the report, especially the test done by the MIT,
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       Muzaffarpur. The learned Tribunal has referred the report

       submitted by Mr. Verma and Mr. Singha. The relevant part of the

       findings and observations of the learned Arbitrator present at page

       ‘29’and ‘30 in the original award are being extracted hereunder for

       a ready reference:-

                              “……. Mr. Verma in his report, has stated as follows
                              :-
                                   The position in the premises of the company on
                              the date of raid were as follows :-
                                   (i) A/B Switch open.
                                   (ii) 330 KVA line remove from the line placing
                              the consumer in the category of section A(2) of the
                              16.9, therefore this section may be applied.
                                   He has not discussed any thing detail and the
                              reasons given for the application of Clause 16.9 but
                              Mr. Singha has discussed this in great detail and I
                              am also in complete agreement that calculation has
                              to be done under clause 16.9 of the tariff for a total
                              period of 180 days. This 180 days will have to be
                              divided into two parts.
                                   (i) 177 days prior to 31.07.95. Sanction Load=
                              1500 KVA and transformer capacity= 2250 KVA.
                                   (ii) 01.08.95 to 04.08.95 sanctioned load of
                              2500 KVA and capacity found 3750 KVA Mr. Singha
                              has made further calculation for 177 days, which
                              comes to 2677 KVA and for three days 1676 KVA
                              and he has held that the calculation should be done
                              under clause 16.9(i) of the tariff. On this point, Mr.
                              Varma has taken a contrary view and has stated that
                              drawing of such power must have taken only after
                              31.07.95 because of the inspection and meter
                              reading on that day by the Employees of the board
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                              and they found the meter line and A/B Switch etc.
                              intact. According to him mere Statement on behalf
                              of the Board that their officers and staff were in
                              connivance with the company will not be enough
                              and therefore, tariff under Clause 16.9 should be
                              calculated only after 31.07.95 but he has not
                              mentioned as to what will be the tariff prior to
                              31.07.95. He has simply stated that there is no
                              material/evidence to show that illegal extraction of
                              electricity was going on even prior to 31.07.95. I do
                              not agree with him because there are materials and
                              in this connection, I will refer once again to the
                              reports of CRITL and MIT, Muzaffarpur and the
                              details and specification of transformer given by the
                              company and this has been discussed earlier. I
                              therefore in complete agreement with Mr. Singha
                              hold that the Board is entitled to assess the tariff for
                              the two periods mentioned above on the total KVA
                              found in the test reports. The board should
                              accordingly prepare a fresh bill on the basis of the
                              finding and directions given above. ….”


                   28. In the aforementioned background, when we look

       into the application under Section 33 (Annexure ‘P/2’), it is found

       that the necessity to file this application arose only because in the

       last portion of the award a direction has been given that “(1) The

       Board shall prepare a fresh bill one for the period of 177 days prior

       to 31/7/95 on the maximum transformer capacity of 2500 KVA and

       for three days from 1/8/95 on the maximum capacity of 3750

       KVA…”
Patna High Court COMMERCIAL APP No.6 of 2025 dt.22-06-2026
                                        20/24




                   29. The respondents are correct in saying that the

       directions given in the last portion of the award is contradictory to

       the direction given at page ‘29’ and ‘30’ of the award. We have

       extracted the relevant portion from page ‘29’ and ‘30’ of the award

       hereinabove. Those are based on discussions and materials referred

       by the learned Arbitrator.

                   30. Coming to the scope and ambit of Section 33 of the

       Act of 1996, we first reproduce Section 33 hereunder:-

                                      “33. Correction and interpretation of
                                      award; additional award.—(1) Within
                                      thirty days from the receipt of the arbitral
                                      award, unless another period of time has
                                      been agreed upon by the parties—
                                           (a) a party, with notice to the other party,
                                           may request the arbitral tribunal to
                                           correct any computation errors, any
                                           clerical or typographical errors or any
                                           other errors of a similar nature occurring
                                           in the award;
                                           (b) if so agreed by the parties, a party,
                                           with notice to the other party, may
                                           request the arbitral tribunal to give an
                                           interpretation of a specific point or part
                                           of the award.
                                      (2) If the arbitral tribunal considers the
                                      request made under sub-section (1) to be
                                      justified, it shall make the correction or give
                                      the interpretation within thirty days from the
                                      receipt of the request and the interpretation
                                      shall form part of the arbitral award.
Patna High Court COMMERCIAL APP No.6 of 2025 dt.22-06-2026
                                        21/24




                                      (3) The arbitral tribunal may correct any
                                      error of the type referred to in clause (a) of
                                      sub-section (1), on its own initiative, within
                                      thirty days from the date of the arbitral
                                      award.
                                      (4) Unless otherwise agreed by the parties, a
                                      party with notice to the other party, may
                                      request, within thirty days from the receipt of
                                      the arbitral award, the arbitral tribunal to
                                      make an additional arbitral award as to
                                      claims presented in the arbitral proceedings
                                      but omitted from the arbitral award.
                                      (5) If the arbitral tribunal considers the
                                      request made under sub-section (4) to be
                                      justified, it shall make the additional arbitral
                                      award within sixty days from the receipt of
                                      such request.
                                      (6) The arbitral tribunal may extend, if
                                      necessary, the period of time within which it
                                      shall     make   a     correction,   give    an
                                      interpretation or make an additional arbitral
                                      award under sub-section (2) or sub-section
                                      (5).
                                      (7) Section 31 shall apply to a correction or
                                      interpretation of the arbitral award or to an
                                      additional arbitral award made under this
                                      section.”



                   31. On a bare reading of Section 33 of the Act of 1996

       would show that it permits a party, with notice to the other party, to

       request the Arbitral Tribunal to correct any computation errors, any

       clerical or typographical errors or any other errors of a similar
Patna High Court COMMERCIAL APP No.6 of 2025 dt.22-06-2026
                                        22/24




       nature occurring in the award. To this Court, it appears that the

       cluster of words such as “any computation errors, any clerical or

       typographical errors or any other errors of a similar nature

       occurring in the award” are to be given a purposive interpretation

       in the context in which this provision has been incorporated in the

       statute. In a world of commercial exigencies this provision has to

       be interpreted in such a way that it serves the purpose behind

       incorporating Section 33 of the Act of 1996. It is very much clear

       from the findings of the learned Arbitral Tribunal at page ‘29’ and

       ‘30’ of the original award that the learned Tribunal was in

       complete agreement with Mr. Singha’s report. The Tribunal

       referred the reports of CRITL and MIT, Muzaffarpur and the

       details and specification of transformer given by the Company.

       The learned Arbitral Tribunal held that the Board is entitled to

       assess the tariff for the two periods on the total KVA found in the

       test reports and the Board should accordingly prepare a fresh bill

       on the basis of the finding and directions given above. In fact, in

       the original award the learned Tribunal has very unambiguously

       held that the Board is entitled to assess the tariff on the total KVA

       found in the test reports. Thus, in the last portion of the award, the

       direction of the learned Tribunal to the Board to prepare a fresh

       bill (1) for the period of 177 days prior to the 31.07.1995 on the
Patna High Court COMMERCIAL APP No.6 of 2025 dt.22-06-2026
                                        23/24




       maximum transformer capacity of 2500 KVA and for three days

       from 1/8/95 on the maximum capacity of 3750 KVA is

       contradictory to the first direction, therefore, the respondents

       rightly moved before the learned Arbitral Tribunal for a

       correction/clarification.

                   32. We have further noticed from the additional award

       (Annexure ‘P/4’) that the learned Arbitral Tribunal found that the

       Board wanted certain clarification because of the mistake which

       had crept in the award regarding mentioning of the figures at two

       places and due to that difficulty was being felt in the preparation of

       the bill. The Arbitral Tribunal having found that there was an error

       which was required to be corrected, clarified that the direction

       given by the Tribunal at page ‘32’ of the award should be read as

       follows:-

                              “(1) The Board shall prepare a fresh bill for the
                              period of 177 days upto 31.07.95 and 3 days from
                              1.8.95 on the basis of total KVAs, that is 6265, as
                              given in the two test reports and accepted by me.”


                   33. We are of the view that the learned Arbitral Tribunal

       has only corrected the error which had crept in the last portion of

       the order which was apparent on the face of it. The learned

       Commercial Court, Patna has taken a correct view of the matter by

       refusing to interfere with the additional award.
             Patna High Court COMMERCIAL APP No.6 of 2025 dt.22-06-2026
                                                     24/24




                                34. In result, we find no merit in this appeal. It is

                    dismissed accordingly.


                                           (Rajeev Ranjan Prasad, J)


                                               ( Kumar Manish, J)
SUSHMA2/Rishi-
AFR/NAFR
CAV DATE               16.06.2026
Uploading Date         22.06.2026
Transmission Date


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