In Brief
NTPC Ltd. appealed against an arbitral award favouring a contractor (Deconar Services) in a construction dispute involving two projects. The contractor claimed a refund of a 16% rebate and escalation charges for work done beyond the scheduled period, arguing the firm price clause did not apply after the scheduled date. NTPC contended the arbitrator misinterpreted the contract. The Supreme Court held that where an arbitrator gives clear reasoning for a possible interpretation of contract terms based on relevant evidence, courts cannot interfere merely because another interpretation exists. The appeals were dismissed, upholding the arbitral award.
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