In Brief
An international commercial arbitration dispute arose between a Korean construction company and India's highways authority concerning price adjustment formula changes for cement, steel, plant, and machinery. When government guidelines introduced a "linking factor" to convert wholesale price indices, the contractor challenged the arbitral award applying that linking factor. The Supreme Court held that the majority arbitrators breached natural justice by relying on government guidelines never disclosed to the parties. The Court also found the award violated basic notions of justice by allowing a unilateral policy circular to alter the contract without consent. Setting aside the majority award, the Court upheld the dissenting arbitrator's award applying the original contractual formula, and examined the amended public policy standards under the 2015 Amendment Act.
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