VidhiSangh

Supreme Court of India · 28/07/2021

PSA SICAL TERMINALS PVT. LTD. versus THE BOARD OF TRUSTEES OF V.O. CHIDAMBRANAR PORT TRUST TUTICORIN AND OTHERS

[2021] 5 S.C.R. 408 · 2021 INSC 365

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Summary

The Court upheld setting aside an arbitral award that replaced a port terminal’s royalty arrangement with revenue sharing. The asserted pre-existing right to pass royalty through in tariff lacked evidentiary support, and the tribunal ignored material tariff orders. It also imposed a fundamentally different bargain on an unwilling party. These defects justified intervention within the limited review of arbitral awards. Separate disputes over tariff treatment, discrimination, election of remedies and losses were left open.

Issues

  1. Whether the finding of a qualifying change in law was supported by the governing documents.
  2. Whether the tribunal could substitute revenue sharing for the agreed royalty model.
  3. Whether the defects justified intervention under the limited arbitral-review jurisdiction.

Provisions considered

Held

Result

Appeals dismissed without costs; setting aside of the arbitral award upheld, with other disputes left open for appropriate proceedings.

Judgment PDF: Supreme Court of India, [2021] 5 S.C.R. 408.