In Brief
This case concerned a dispute between PSA SICAL Terminals and V.O. Chidambranar Port Trust over a 30-year BOT container terminal agreement. SICAL argued that changes in tariff policy amounted to a 'change in law' entitling it to convert from a royalty payment model to revenue sharing under Article 14.3 of the agreement. An arbitral tribunal awarded SICAL relief. The Supreme Court reversed this, holding that: (1) there was no evidence of an initial policy permitting royalty as a pass-through cost, so no 'change in law' occurred; (2) the arbitrator lacked jurisdiction to unilaterally rewrite the contract by imposing revenue sharing against TPT's wishes; and (3) such unilateral alteration violated fundamental principles of justice. The appeal was dismissed.
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