Facts
ISRO awarded RVR Projects an EPC contract for an Integrated Titanium Alloy Tank Production Facility at Tumakuru.
Source reference: para. 3–8, 11–14RVR claimed payment for additional works, including an enlarged cable trench, mezzanine-floor work exceeding the tender quantity, and related BOQ items.
Source reference: para. 3–8, 11–14ISRO disputed liability, relying on Clause 12 of the General Conditions of Contract (GCC), which governed variations and additional costs.
Source reference: para. 3–8, 11–14The Commercial Court decreed RVR’s claim for Rs.6,92,87,650, but did not award the interest sought.
Source reference: para. 3–8, 11–14ISRO appealed; RVR filed a cross-objection seeking interest at 18% per annum, which was delayed by 316 days.
Source reference: para. 15–18, 27–29Issues
1. Whether the Commercial Court’s decree for the claimed additional works was sustainable in light of Clause 12 of the GCC and the evidence of departmental approval and payment.
Source reference: para. 18; para. 19–252. Whether RVR was entitled to interest at 18% per annum on its claim.
Source reference: para. 27–29Law Applied
The Court applied Clause 12 of the GCC, which required the contractor to follow the Department-approved drawings and designs and required variations to be specifically approved; absent such approval, variations were to be carried out at no extra cost where the cost was deemed included in the contract price.
Source reference: para. 19A party claiming payment for additional work must establish not merely that the work was physically executed, but that it fell outside the contractual scope, was undertaken pursuant to a duly authorised departmental variation, and was properly measured and valued.
Source reference: para. 20–24The judgment cited no judicial precedents.
Source reference: no citationSection 13(1-A) of the Commercial Courts Act provided the basis for the appeal, and Order XLI Rule 22 CPC was invoked for the cross-objection.
Source reference: p. 1–2Reasoning
The Court held that the tender documents and Clause 12 required prior departmental approval for the disputed variations.
Source reference: para. 20–24RVR produced no contemporaneous written instruction or approval for the principal cable-trench and mezzanine claims; the later preparation of extra-item statements and evidence that some other extra works had been accepted did not establish entitlement to all disputed amounts.
Source reference: para. 20–24The Commercial Court had not adequately distinguished approved extra work from work already within the EPC scope, nor established the contractual basis and valuation of each claimed item.
Source reference: para. 21–24Because the consequential claims depended on the alleged additional mezzanine and cable-trench work, they also could not independently sustain the decree.
Source reference: para. 21–24With the suit dismissed, the interest claim did not survive; the cross-objection was also barred by the unexplained 316-day delay.
Source reference: para. 28–29Holding
The High Court allowed ISRO’s appeal, set aside the Commercial Court’s judgment and decree dated 15 October 2024, and dismissed RVR’s suit for Rs.6,92,87,650.
RVR’s cross-objection for interest was dismissed on the merits and for delay.
Source reference: para. 28–29; order, para. (iii)The final order directed that the parties bear their respective costs.
Source reference: order, para. (iv)Acts & Sections Cited
1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Commercial Courts Act, 20151
Original Court PDF
M/S RVR PROJECTS PRIVATE LIMITEDvsTHE DIRECTOR OF THE CENTRE/UNIT
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Original judgment, available to read, download and summarize on LawLens.in
