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Supreme Court of India 2017-12-05 allowed

Sutlej Construction vs Union Territory of Chandigarh

Bench: 2 — Sanjay Kishan Kaul

In Brief

Sutlej Construction was awarded an earth excavation contract to widen a road approach. Performance was interdependent: the contractor was to excavate and transport earth; the respondent was to spread, compact, and provide unloading facilities. The respondent terminated the contract; arbitration followed, awarding the contractor Rs 10+ lakh. The High Court set aside the award, finding the respondent had no contractual obligation to provide unloading areas or remove obstructions. The Supreme Court held that an appellate court cannot re-appreciate evidence when reviewing arbitral awards. The arbitrator's conclusion—that site accessibility and unloading facilities were implicit contractual duties—was plausible and binding. The award was enforced.

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Arbitration Arbitral Award Contract Section 34 Application Evidence Appreciation Public Policy Civil Procedure

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