Case Note & Summary
The arbitration petition arose from a tender floated by Brihanmumbai Electric Supply and Transport Undertaking (BEST) on 9 November 2018 for allotment of advertisement rights on 3121 buses for three years. Signpost India Private Limited, the petitioner, participated and was declared the successful bidder with an offer of Rs.95.5 crores. The contract was awarded on 23 January 2019 for the period 11 February 2019 to 10 February 2022, and a formal agreement was executed on 4 November 2020. The petitioner claimed that numerous buses were damaged and unfit for advertisement display. Joint surveys identified 753 buses as majorly damaged, and later a second survey found 175 damaged buses. The petitioner sought rebate for these damaged buses as well as for the period of the COVID-19 lockdown from 24 March 2020 onwards. BEST granted partial rebates, including 100% rebate for certain periods and 75% rebate for others, but disputes persisted over the extent of rebates, alleged excess payments, and calculation methods. After the contract expired, the petitioner sought arbitration, and a sole arbitrator was appointed. The petitioner filed a statement of claim with eight claims seeking rebates and refunds totaling several crores. BEST filed a statement of defence and counterclaims for delayed payment charges, RTO fees, and defacement charges. The arbitral tribunal framed fifteen issues and, by an award dated 2 January 2024, rejected all claims of the petitioner and partly allowed the respondent’s counterclaims, awarding Rs.49,60,063 for interest on delayed payment, Rs.46,78,000 for RTO fees, Rs.37,29,000 for defacement charges, plus costs of Rs.48,20,000 with interest. The petitioner then challenged this award under Section 34 of the Arbitration and Conciliation Act, 1996 before the Bombay High Court. The provided judgment text does not include the court’s reasoning or final decision on the petition.
Issue of Consideration
ARBITRATION PETITION NO.282 OF 2024
Case Details
2025 LawText (BOM) (12) 66
Arbitration Petition No. 282 of 2024 with Interim Application No. 7232 of 2025
Harshvardhan Kotla, Dhanesh Dhotre, Shruti Bedekar, Ajay Basutkar, Nirav Shah, Aprajita Mahto, Shraddha Nagaonkar, Sagar Shetty
Signpost India Private Limited
Brihanmumbai Electric Supply and Transport Undertaking (BEST)
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Nature of Litigation
Arbitration Petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the Arbitral Award dated 2 January 2024.
Remedy Sought
Petitioner sought setting aside of the Arbitral Award and grant of its claims or alternatively remand.
Filing Reason
Petitioner was aggrieved by the Award rejecting its claims and allowing the respondent's counterclaims.
Previous Decisions
Arbitral Tribunal passed Award on 2 January 2024; earlier, Tribunal rejected Respondent's Section 16 application challenging jurisdiction on 28 July 2022.
Judgment Excerpts
Petitioner has filed the present Petition under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) challenging the Award dated 2 January 2024 passed by the learned sole Arbitrator.
By the impugned Award, the learned sole Arbitrator has rejected all the claims made by the Petitioner. The counterclaim filed by the Respondent is allowed to the extent of sum of Rs. 49,60,063/- towards interest on delayed payment charges, Rs. 46,78,000/- towards RTO fees and Rs. 37,29,000/- towards defacement charges.
The Respondent floated a tender on 9 November 2018 for allotment of advertisement rights for 3121 buses in its fleet for a period of three years.
An Agreement dated 4 November 2020 was executed between the parties.
Procedural History
Tender floated on 9 November 2018. Contract awarded on 23 January 2019, effective 11 February 2019 to 10 February 2022. Agreement executed on 4 November 2020. Disputes arose regarding rebates for damaged buses and COVID-19 lockdown. Petitioner sought arbitration. Arbitral Tribunal constituted. Petitioner filed Statement of Claim. Respondent filed counterclaim and Section 16 application challenging jurisdiction, which was rejected on 28 July 2022. Petitioner filed Section 17 application. Award passed on 2 January 2024 rejecting petitioner's claims and partly allowing respondent's counterclaims. Petitioner filed Section 34 petition in 2024.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 34, Section 17, Section 16
