In Brief
A Singapore-registered company (PSA Mumbai) and an Indian company formed a consortium to bid for a container terminal project at Jawaharlal Nehru Port under a tender process. After their financial bid was accepted, the Port Authority issued a Letter of Award. Before the Concession Agreement could be signed, disputes arose and the Authority invoked an arbitration clause from the draft Concession Agreement. The Supreme Court held that a Letter of Award does not constitute a binding contract—it requires further steps, including final signing of the Concession Agreement. The arbitration clause applies only after contract execution, not during the bidding stage. Disputes during bidding must be resolved by courts as specified in the tender documents. The appeal was allowed and the Arbitrator's decision reinstated.
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