Facts
BSR and the State Project Director (SPD) entered into a construction contract for Package A-3 under the RMSA scheme.
Source reference: no citationBSR claimed price adjustment under Clause 40 of the Conditions of Contract.
Source reference: no citationThe arbitral tribunal held that the price-adjustment clause formed part of the contract but rejected BSR’s claim for ₹4,53,24,186 for want of evidence establishing the calculation and amount due.
Source reference: para. 33–37The Commercial Court dismissed BSR’s Section 34 challenge.
Source reference: no citationIn this appeal under Section 37 of the Arbitration and Conciliation Act, 1996, BSR’s challenge was confined to the rejection of its price-adjustment claim.
Source reference: para. 23–24Issues
1. Whether the arbitral tribunal’s rejection of BSR’s price-adjustment claim for failure to prove the amount claimed disclosed a ground for appellate interference
Source reference: para. 24, 38–402. Whether the SPD’s alleged failure to dispute the quantum relieved BSR of the obligation to establish the basis and measure of its claim
Source reference: para. 25, 32, 38–39Law Applied
Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 provides for an appeal from an order refusing to set aside an arbitral award; the appeal was brought under that provision read with Section 13(1-A) of the Commercial Courts Act, 2015.
Source reference: para. 1Clause 40 of the contract provided for price adjustment according to the formulae in the Contract Data and identified the relevant cost components.
Source reference: para. 29–30A claimant seeking payment under that clause must establish both entitlement and the measure of the amount claimed; the court cited no judicial precedents in applying this principle.
Source reference: para. 32, 38–39Reasoning
Although the tribunal found that the price-adjustment clause was part of the contract, BSR had not provided the calculation sheets, supporting documents, or data needed to apply the contractual formulae.
Source reference: para. 34–36The amount claimed also varied between the statement of claim, a spreadsheet, and a later statement, without explanation; BSR had not produced the underlying bills or evidence of the relevant cost parameters.
Source reference: para. 37The SPD’s position that the clause did not apply did not remove BSR’s burden to prove the amount payable.
Source reference: para. 32, 38–39The tribunal’s rejection of the claim therefore disclosed no ground for interference, and the Commercial Court had correctly declined to set aside that part of the award.
Source reference: para. 32, 38–40Holding
The High Court answered the issues against BSR, holding that it had failed to establish the amount due under the price-adjustment clause.
Finding no ground to interfere with the award or the Commercial Court’s decision, the Court dismissed the appeal.
Source reference: para. 40–41Acts & Sections Cited
5 provisions across 2 statutes referred to in this judgment. Each provision opens on LawLens.
Commercial Courts Act, 20151
Arbitration and Conciliation Act, 19964
Original Court PDF
M/S BSR INFRATECH INDIA LTDvsSTATE PROJECT DIRECTOR
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