Section 31(6) AA – Interim Arbitral Award based on Minutes of Meetings & Invoices

The contract in respect of contract of a Boiler Turbine Generator was terminated on 27.11.2025 by BHEL.  The respondent claimant filed ten claims.

On an application of the respondent BHEL under Section 31(6), by an interim Award dated 27.7.2017, the three-Member Arbitral Tribunal awarded Rs.115 crores in favour of the Respondent on the ground that the petitioner had admitted the claim to that extent.

For this purpose, the respondent relied on the minutes of the meetings between the parties showing the admissions of the petitioner for having received goods and invoices from the respondent for Rs.115 crores and Rs.65 crores for Amravati and Nashik projects, respectively.

In that context, the High Court has considered the principles governing judgments / awards on admission on the lines of Order XII Rule 6 of the Code of Civil Procedure.  In order XII Rule 6 of the CPC, reference is made to admissions in pleadings or otherwise including orally. 

It was, therefore, observed that admissions in pleadings are placed on a higher footing to the extent that they may require nothing more for a decree to follow, whereas admissions outside the pleadings must be considered contextually.   To hold that there is a bar on grant an award of admissions in the case of evidentiary admissions would be inconsistent with the text of Order XII Rule 6 of the CPC.

In that context, the Tribunal held and confirmed by Section 34 High Court that the minutes of the meetings record expression admission of liability fortified by subsequent correspondence.