NDLI: M/s. National Highways and Infrastructure Development Corporation Ltd. Vs. M/s. Bscpl Infrastructure Ltd.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	schedule of bidding process Arbitration Jurisdiction Arbitration clause
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Arbitration: Arbitration clause – Whether an arbitration clause would spring into being at the stage of Letter of Award (LOA) acceptance or whether it would be necessary to sign the ultimate agreement which would then bring in the arbitration clause contained therein – In the instant case, Request for Proposal (RFP) was sent out by the appellant for road construction – In the LOA, the Government of India made reference to the bid document and a request to return signed copy of duplicate LOA as its acknowledgment and to execute contract agreement within 15 days from date of issue of LOA – Respondent accepted the bid proposal and enclosed copy of LOA received by fax duly signed with an acknowledgment – After 2 years, appellant decided to withdraw the LOA due to non-availability of NOC from District council which was sine qua non for the land for the project – High Court held that the arbitration clause is contained in the standard form of the draft agreement and that general reference to it was sufficient to appoint arbitrator – On appeal, held: A perusal of the clauses contained in the RFP would only show that a bidder is liable for disqualification and forfeiture of bidding security at all stages of the agreement, notwithstanding that there may not be execution of the agreement between the parties – The schedule of bidding process begins with the last date for receiving queries and ends with the signing of concession agreement, LOA being Item No. 7 and part and parcel of this bidding process – The moment this is so, then under clause 6.1, dispute resolution can only take place by the Courts of Delhi – It is not possible to say that a standard form arbitration clause contained in a draft agreement would then oust clause 6.1 and disturb the entire scheme of the schedule of bidding process – This being the case, even at the stage of acceptance of LOA, if disputes arose between the parties, they could only be resolved by the Courts of Delhi and not by arbitration – Jurisdiction.
Judge	Hon'ble Mr. Justice R.F. Nariman
Neutral Citation	2019 INSC 873
Petitioner	M/s. National Highways And Infrastructure Development Corporation Ltd.
Respondent	M/s. Bscpl Infrastructure Ltd.
SCR	[2019] 10 S.C.R. 636
Judgement Date	2019-08-07
Case Number	6168

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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