Case Note & Summary
The dispute arose from a construction contract between M/s. BSR Infratech India Ltd. and the State Project Director under the Rashtriya Madhyamika Shikshana Abhiyana scheme. BSR was awarded multiple packages for construction works, including the construction of model schools and hostels. Following delays attributed to various factors, BSR sought to invoke arbitration for claims totaling over Rs. 80 crores, including a significant claim for price adjustment. The arbitral tribunal partly allowed some claims but rejected the price adjustment claim due to lack of evidence. BSR appealed the tribunal's decision, particularly contesting the rejection of the price adjustment claim. The High Court found that BSR had not substantiated its claims with adequate evidence and upheld the tribunal's findings. The appeal was dismissed, affirming the arbitral tribunal's award and the commercial court's judgment.
Headnote
A) Arbitration Law - Price Adjustment Clause - Entitlement to Price Adjustment - Arbitration and Conciliation Act, 1996, Section 34 - The appellant claimed price adjustment based on a clause in the contract, but failed to provide evidence to substantiate the claim. The court upheld the arbitral tribunal's decision to reject the claim for lack of necessary evidence. Held that the burden of proof rested on the appellant to establish the claim (Paras 24-40).
Issue of Consideration
Whether the appellant was entitled to price adjustment under the contract and whether the arbitral tribunal's rejection of the claim was justified.
Final Decision
The appeal was dismissed, affirming the arbitral tribunal's award and the commercial court's judgment. The court found no grounds to interfere with the tribunal's decision regarding the price adjustment claim.
Law Points
- Commercial Courts Act
- Arbitration and Conciliation Act
- arbitral award
- price adjustment clause
- evidence requirement
