| Content Provider | Supreme Court of India |
|---|---|
| e-ISSN | 30484839 |
| Language | English |
| Access Restriction | NDLI |
| Subject Keyword | Arbitration and Conciliation Act 1996: ss. 37 and 34 – Appealable orders – Arbitral award |
| Content Type | Text |
| Resource Type | Law Judgement |
| Jurisdiction | India |
| Act(s) Referred | Indian Contract Act, 1872 (9 of 1872) Arbitration and Conciliation Act, 1996 (26 of 1996) |
| Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
| Case Type | Appeal |
| Court | Supreme Court of India |
| Disposal Nature | Appeal Disposed Off |
| Headnote | Arbitration and Conciliation Act, 1996: ss. 37 and 34 – Appealable orders – Arbitral award – Sustainability of, under section 37 – On facts, execution of contract wherein appellant was to supply pipes to the respondent-ONGC – During execution of contract, certain delays in meeting the obligations as required under the contract – Deduction of certain amount by respondent as liquidated damages from various bills submitted by the supplier – Dispute before the arbitral tribunal – Arbitral tribunal proceeded to determine the actual damages, holding that the liquidated damages could not be granted as there was no breach of contract since time was not essence of contract – Interference with – Held: It has to be culled out from the reading of the entire contract as well as the surrounding circumstances whether time is essence of the contract – Merely having an explicit clause may not be sufficient to make time the essence of the contract – As the contract was spread over a long tenure, the intention of the parties to provide for extensions surely reinforces the fact that timely performance was necessary – Fact that such extensions were granted indicates respondent’s effort to uphold the integrity of the contract instead of repudiating the same – Thus, award cannot be interfered since the arbitral tribunal’s interpretation of contractual clauses having extension procedure and imposition of liquidated damages, are good indicators that ‘time was not the essence of the contract – Arbitral tribunal’s view to impose damages accrued on actual loss basis could be sustained in view of the waiver of liquidated damages and absence of precise language which allows for reimposition of liquidated damages – High Court and District Court strayed beyond the limitation u/s. 34 and 37 – Order of the High Court as well as the District Court is set aside – Award of the arbitral tribunal is upheld – Contract Act, 1872 - ss. 55 and 74. |
| Judge | Honble Mr. Justice N.V. Ramana |
| Neutral Citation | 2021 INSC 724 |
| Petitioner | Welspun Specialty Solutions Limited (formerly Known As Remi Metals Gujarat Ltd. |
| Respondent | Oil And Natural Gas Corporation Ltd. |
| SCR | [2021] 11 S.C.R. 120 |
| Judgement Date | 2021-11-13 |
| Case Number | 2826- 2827 |
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