In Brief
Konkan Railway Corporation (KRCL) challenged a Division Bench order that reversed an Arbitral Tribunal's award and a Single Judge's affirmation. The dispute concerned whether a contractor building a railway bridge was entitled to reimbursement for increases in Entry Tax and Toll Tax under the contract clauses. The Tribunal and Single Judge held these taxes were embedded in the contract price and not separately reimbursable; the Division Bench disagreed, applying a harmonious interpretation principle. The Supreme Court held that courts exercising limited appellate jurisdiction under Section 37 cannot reinterpret contracts and substitute their views for plausible Arbitral Tribunal interpretations merely because alternative views exist. The Tribunal's view was reasonable and not perverse. The Court allowed the appeal and upheld the Arbitral Award.
The lawyer headnote and full judgment text are available to registered users.