2025ArbitrationDecember 2025High CourtLatestLegal

Arbitral Award based on contractual breaches (failed purchase order) will be upheld unless patently illegal – Bombay HC

The Department of Posts had executed contract with TCS and for execution of the said contract, it had issued three Purchase Orders to the respondent Inspira.

Purchase Order No.3 for supply of Edge Servers and Edge Monitors at the cost of Rs.4,08,82,385/- was the subject matter of dispute between the parties.   However, the supply could not take place.  The dispute was as to the responsibility for non delivery and if Inspira Is entitled to payment under the failed purchase order.

By the Award dated 30.3.2023, the sum of Rs.96,20,515/- in favour of Inspira was granted after deducting Rs.75,60,785/- from Rs.1,84,85,400/-. 

TCS has challenged the entire award.  Inspire challenged the award to the extent of deduction of Rs.75,60,785/- towards support for 6.5 years.

HELD that under the Purchase Order, the time for delivery was 20.7.2013.  However, by the disclosure of eight locations made by the TCS on 21.10.2021, TCS expected delivery of 8 out of 207 Servers after 21.10.2013. The correspondence show that subsequent conduct extended timelines for enforcement of the contract.  

Judgment dated 2.12.2025 of the High Court of Bombay in Commercial Arbitration Petition No.415 of 2024 of Tata Consultancy Services Ltd   Vs.  Inspira IT Products Pvt Ltd with connected matter

 

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