In Brief
Chandigarh Construction Co. contracted with the State of Punjab to construct part of the Sutlej Yamuna Link Canal. The contractor claimed additional payment for extra work arising from increased earthwork, difficult soil conditions, and design changes. An arbitrator awarded the claim at a 93.12% premium without providing reasons, contrary to the contract requirement. The courts below rejected most claims. The Supreme Court held that while the unreasoned award was flawed, the contractor's entitlement to extra payment was undisputed. Rather than outright rejection, the Court allowed the claim calculated at the 35.02% premium specified in the contract documents, with 12% per annum interest, to be quantified within six weeks. The appeal was allowed in part with costs.
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