VidhiSangh

Supreme Court of India · 09/03/2018

KERALA STATE ELECTRICITY BOARD AND ANR versus KURIEN E. KALATHIL AND ANR.

[2018] 11 S.C.R. 511 · 2018 INSC 224

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Summary

The Supreme Court set aside further payment directions against the Kerala State Electricity Board in a dam-construction dispute. The contractor could not change the principal-first appropriation adopted in the claim statement incorporated in the earlier judgment, or obtain subsequent interest not awarded there. Uniform escalation percentages for additional work were also unsustainable. With no arbitration agreement, counsel’s oral consent without written party authority could not support the reference; the resulting award was set aside. Payments already made were adjusted in full settlement of the additional-work claims.

Issues

  1. Whether the contractor could change the earlier method of payment appropriation and claim additional principal and subsequent interest.
  2. Whether uniform labour and material escalation percentages were justified.
  3. Whether counsel’s oral consent could support an arbitration reference without an arbitration agreement or written party consent.

Provisions considered

Held

Result

Appeals allowed; impugned High Court judgment and arbitral award set aside. Board’s pending arbitration appeal allowed. Rs.6,74,75,247 already paid treated as full settlement of Ex.P59 claims. Parties to bear their own costs.

Judgment PDF: Supreme Court of India, [2018] 11 S.C.R. 511.