Karnataka High Court
Arbitration and MediationContract Law

A contractor must prove the computation and quantum of a contractual price-adjustment claim.

M/S BSR INFRATECH INDIA LTD vs STATE PROJECT DIRECTOR

Karnataka High CourtJUDGMENT: September 28, 20262 MIN READSOURCE JUDGMENT
A contractor must prove the computation and quantum of a contractual price-adjustment claim.. M/S BSR INFRATECH INDIA LTD vs STATE PROJECT DIRECTOR. Karnataka High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

BSR and the State Project Director (SPD) entered into a construction contract for Package A-3 under the RMSA scheme.

Source reference: no citation

BSR claimed price adjustment under Clause 40 of the Conditions of Contract.

Source reference: no citation

The 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. 33–37

The Commercial Court dismissed BSR’s Section 34 challenge.

Source reference: no citation

In 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. 23–24
02

Issues

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, 38–40

2. 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, 38–39
03

Law 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. 1

Clause 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. 29–30

A 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, 38–39
04

Reasoning

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. 34–36

The 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. 37

The SPD’s position that the clause did not apply did not remove BSR’s burden to prove the amount payable.

Source reference: para. 32, 38–39

The 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, 38–40
05

Holding

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. 40–41
06

Acts & 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

Karnataka High Court

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M/S BSR INFRATECH INDIA LTDvsSTATE PROJECT DIRECTOR

Karnataka High Court · September 28, 2026

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