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Arbitral Awards Against NPCIL -Termination of Contracts Before Expiry Unlawful & Loss of Profit @10% Valid

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Comments on the post of  Ramasubramnian and the judgment dated 27.10.2026 of the High Court of Bombay in Arbitration Petition Nos.639 of 2017 and 638 of 2017

By two section 34 petitions, the arbitral awards dated 6.12.2016 and corrected by the corrigendum dated 27.12.2016 passed by the retired Chief Engineer of NPCIL in favour of Standard Corrosion Controls Pvt Ltd.

Clause 17.8 of the GCC in the Work Orders  provided for dispute resolution by a sole arbitrator appointed by the Chairman & MD of NPCIL.

The Arbitral Tribunal decided three issues of delay, termination and risk & cost.  In that context, the High Court framed core issue no.2 for determination as to whether the termination was unlawful, no fresh seven-day notice was given under Clause 13.2.1 and that time was not the essence.

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