In Brief
This case concerns a four-lane road construction contract awarded by the National Highways Authority of India (NHAI) to the appellant. A dispute arose regarding geogrid material for reinforced earth walls: while the BOQ listed insufficient quantities, the actual work required significantly more material. The Arbitral Tribunal held that this automatic increase in quantity (resulting from NHAI's own estimation error) was not a contractual "variation" triggering rate renegotiation, so the contractor was entitled to payment at the original BOQ rates. The Single Judge upheld this award. However, the Division Bench set it aside, calling the interpretation unreasonable and contrary to public policy. The Supreme Court reversed the Division Bench, holding that the Arbitral Tribunal's interpretation was plausible and reasonable. The court emphasized that when a Single Judge has upheld an arbitral award under Section 34, appellate courts have severely limited jurisdiction under Section 37 and must show great restraint.
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