VidhiSangh

Supreme Court of India · 24/08/2023

M/S HINDUSTAN CONSTRUCTION COMPANY LIMITED versus M/S NATIONAL HIGHWAYS AUTHORITY OF INDIA

[2023] 11 S.C.R. 623 · 2023 INSC 768

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Summary

The Court restored arbitral awards accepting composite measurement of embankments made with soil and fly ash or pond ash. The tribunals’ technically informed contractual interpretation was plausible, so the High Court could not substitute its preferred interpretation. The Court also explained why a dissenting opinion cannot ordinarily be converted into an award when the majority award is set aside.

Issues

  1. Whether courts could displace the tribunals’ interpretation of the embankment measurement clauses under Sections 34 and 37.
  2. Whether setting aside a majority award permits treating the dissenting opinion as the award.

Provisions considered

Held

Result

All five appeals allowed; challenged High Court judgments set aside and awards restored to the extent set aside. Compounded monthly interest directions modified to uniform 12% interest on the embankment amounts due, from award to payment; NHAI to pay within eight weeks. No costs.

Judgment PDF: Supreme Court of India, [2023] 11 S.C.R. 623.