In Brief
ONGC floated a tender for seamless steel pipes, won by Remi Metals. The supplier delayed deliveries; ONGC deducted liquidated damages from invoices. When Remi Metals challenged this before arbitration, the tribunal held time was not the essence of the contract due to extension clauses and prior waiver of damages. ONGC appealed but the Supreme Court upheld the award, holding that whether time is essential must be determined by reading the entire contract and circumstances, not just explicit language. The Court found the tribunal's decision plausible and reasonable, refusing to interfere with the arbitral award absent perversity going to its root."
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