Section 42A & Confidentiality Obligations in Arbitral Proceedings
The dispute arising from the delays, progress of works, preparation & approval of drawings, surveyors, etc; in respect of the Eastern Dedicated Freight Corridor Project and the termination of the contract for Bhaupur and Khurja.
The Arbitral Tribunal allowed the claim nos.2, 3, 13 and 16 and rejected rest of the claims.
A careful reading of the pleadings, written submissions and oral arguments advanced before this Court demonstrates that the challenge to all four claims ultimately rests upon a single foundational grievance, namely, that the learned Tribunal erred in declining to rely upon the Rejected Letter addressed by the Respondent to DFCCIL and that such exclusion materially affected the adjudication of the aforesaid claims.
The learned Tribunal therefore held that admitting and relying upon the said communication would be inconsistent with the confidentiality obligations governing the arbitral process under Section 42A of the A&C Act.
A party cannot claim an unrestricted right to rely upon a document solely on the ground that it may support its case, irrespective of the circumstances in which such document was obtained or the legal obligations governing its disclosure. The learned Tribunal was therefore justified in first examining the permissibility of reliance upon the document before considering its evidentiary value.
A statutory mandate enacted by Parliament therefore cannot be diluted, displaced or overridden by institutional rules framed by an arbitral institution. Consequently, the learned Tribunal was fully justified in treating Section 42A of the A&C Act as controlling and binding irrespective of any interpretation sought to be placed upon the ICC Rules.
Judgment dated 6.7.2026 of the High Court of Delhi in OMP (COMM) 124/2024 of JPC Infrastructure and Constructions Private Limited Vs. Alstom Transport India Limited
