In Brief
Larsen and Toubro (L&T) and Puri Construction (PCL) disputed a real estate development agreement. An arbitral tribunal found L&T breached the contract by failing to pay development charges and abandoning the project, awarding PCL damages and relief. The Delhi High Court's Division Bench partly modified this award on quantification grounds. L&T and PCL appealed to the Supreme Court. The Court upheld the Division Bench's decision, affirming that L&T's breaches were established and the development agreement termination was justified. However, the Court clarified that arbitral awards cannot be partly modified—only wholly set aside or remanded. The judgment emphasizes the need for time limits on oral submissions and restraint in arbitration appeals to ensure timely justice and reduce backlogs.
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