Case Note & Summary
Arbitration and Conciliation Act, 1996 - Construction of Contract Terms - Applicability of Sections 34 and 37 - Scope of Interference in Arbitral Awards
Background: The appellant, National Highways Authority of India Ltd., awarded a contract to the respondent for the Allahabad Bypass Project. Disputes arose regarding additional costs incurred due to various factors, including an increase in royalty rates and sales tax, non-payment for executed work, and increased forest transit fees.
Arbitration and Awards: The disputes were referred to an Arbitral Tribunal, which granted various amounts to the respondent for different claims. The appellant challenged the awards under Section 34 of the Arbitration Act. The learned Single Judge and Division Bench of the Delhi High Court confirmed the awards, leading to the present appeal before the Supreme Court.
Appellant's Submissions: The appellant argued against the interpretation of contract terms related to cost adjustments and disputed liabilities for specific works.
Respondent's Defense: The respondent emphasized the narrow scope of interference in arbitration matters under Sections 34 and 37 of the Arbitration Act and relied on previous court decisions supporting their claims.
Consideration of Submissions: The Supreme Court reviewed the arguments presented, emphasizing the limited grounds for challenging arbitral awards and the deference owed to the Arbitral Tribunal's interpretation of contract terms.
Decision: The Supreme Court dismissed the appeals, upholding the awards and finding no merit in the appellant's challenges. Costs were not awarded.
Issue of Consideration: National Highways Authority of India Vs. M/s. Hindustan Construction Company Ltd.
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