In Brief
Ssangyong Engineering challenged an arbitral award denying its claim for unpaid price adjustment under a highway construction contract with NHAI. The majority arbitrators rejected the claim by applying a government-issued linking factor to convert price indices from the old series to the new series, allegedly outside the contract terms. The Supreme Court set aside the majority award on two grounds: (1) it violated natural justice by relying on government guidelines not disclosed to the parties, preventing them from commenting thereon; and (2) it breached fundamental principles of justice by unilaterally applying a formula without the appellant's consent. The Court upheld the dissenting arbitrator's award, which applied the contractual formula and awarded the full claim with interest, invoking Article 142 to avoid undue delay.
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