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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

A contractor was engaged to excavate earth and transport it for road widening; the department was to spread and compact it. The contractor alleged the department failed to provide adequate facilities (accessible unloading areas, removal of obstacles), causing delays. When the contract was terminated, arbitration ensued. The arbitrator awarded the contractor compensation, finding the termination illegal due to the department's breaches. The High Court set aside the award, re-examining the evidence. The Supreme Court allowed the appeal, holding that courts cannot re-appreciate evidence in arbitration challenges and that the interdependent nature of contractual obligations meant the contractor's performance depended on the department providing necessary facilities.

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Arbitration Arbitration & Conciliation Act 1996 Public Policy Contract Interpretation Evidence Appreciation Appellate Jurisdiction

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