Importance and Relevance of Doctrine of “Ante Litem Motam” in the Arbitral Disputes and Claims

Stock Losses in the Fuel at Petrol Pump

Arbitral Award dated 16.7.2014 on the disputes on the Agreement dated 13.8.2009, on the stock losses of the fuel at the patrol pump.

BPCL appointed the petitioner to operate and manage petrol pum.  The burden of losses of stock in the inventory held in the petrol pump would be borne by the BPCL only to the extent of 0.59% of total loss of motor spirit and 0.15% of high-speed diesel. Any loss beyond said limit should be borne by the pump operators.

On 24.6.2009, the policy was changed to take such losses on its own account of BPCL.

The Agreement dated 13.8.2009 was in conformity with the said policy.   However, this policy was changed.  On 18.4.2010, BPCL wrote letter to the petitioner that original policy would apply.

HELD that the Impugned Award takes into account the conduct of the parties before the litigation started, bringing to bear the principle of ante litem motam i.e. communication by the parties prior to disputes commencing being an indicator of a state of mind uninfluenced by the dispute, and the consequent bias in the understanding. Mr. Naikavde having worked under the Agreement for two more years without protest, I am not able to discern a need to set aside the Impugned Award.

Importance and Relevance of Doctrine of “Ante Litem Motam” in the Arbitral Disputes and Claims – The Doctrine refers to the statements, declarations or actions prior to the commencement of a legal dispute, often considered more reliable because they were made without anticipation of litigation.

Judgment dated 4.11.2025 of the High Court of Bombay in Arbitration Petition No.181 of 2015 of Col. (Retd) Ratansinh Pandurang Naikavde   Vs.  Bharat Petroleum Corporation Ltd