Bombay HC to Arbitrator : Stick to the Contract, Not the Committee Minutes
Judgment dated 14.11.2025 of the High Court of Bombay in Commercial Arbitration Petition No.646 of 2021 of Kokan Railway Corporation Ltd Vs. M/s. SRC Company Infra Private Ltd with connected matters
On 25.6.2014, the petitioner was appointed as the Project Management Consultant / Project Executing Agency for the works of NTPC.
On 16.5.2017, the respondent claimant was given letter of acceptance for the said work.
MP Government raised demand for royalty on eath used in embankment construction.
Contractor SRC claimed that the petitioner PMC should bear the royalty citing tender committee minutes and alleged understanding.
The Arbitral Tribunal accepted the SRC claim in respect of liability to pay royalty on ordinary earth and also directed the petitioner to modify / amend the contract with the claimant
Arbitral Award for shifting royalty liability from the contractor to the project management agency is illegal
The Arbitral Tribunals must not re-write contracts or rely on internal notings to override express clauses of the contract.
Arbitral Tribunal cannot suo motu invoke Section 26 of the Specific Relief Act to modify contract and that too, without pleadings or prayer.
