In Brief
Parsa Kente Collieries (appellant), a coal mining joint venture, sought arbitration against Rajasthan Rajya Vidyut Utpadan Nigam (respondent) over a coal supply agreement. The arbitrator awarded price escalation based on the original contractual commencement date (25.06.2011) despite actual supply beginning 21 months later (25.03.2013) due to force majeure delays. The High Court quashed this award, claiming it violated public policy. The Supreme Court partly allowed the appeal, holding that the arbitrator's interpretation was plausible and involved only contractual interpretation, not public policy. The Court restored the price escalation award but confirmed the High Court's rejection of fixed costs and escrow account claims, finding insufficient evidence supporting those awards."
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