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Supreme Court of India 2021-07-28 dismissed

PSA Sical Terminals Pvt. Ltd vs Board of Trustees of V.O. Chidambranar Port Trust Tuticorin and Others

Bench: 2 — B.R. Gavai, R.F. Nariman

In Brief

PSA Sical Terminals (SICAL) sought relief under Article 14.3 of a BOT concession agreement for a container terminal, invoking a change in law after the Tariff Authority for Major Ports (TAMP) changed its policy regarding whether royalty payments could be factored into tariff calculations. The arbitral tribunal found a change in law and converted the contract from a royalty payment to a revenue-sharing model. The Supreme Court dismissed SICAL's appeal, holding the tribunal's award was perverse and acted in excess of jurisdiction by unilaterally rewriting the contract against the port trust's wishes, thereby shocking the conscience of the Court.

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Arbitration and Conciliation Public Policy of India Patent Illegality Contract Interpretation Change in Law Major Ports BOT Agreements

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