VidhiSangh

Supreme Court of India · 07/08/2019

M/S. NATIONAL HIGHWAYS AND INFRASTRUCTURE DEVELOPMENT CORPORATION LTD. versus M/S. BSCPL INFRASTRUCTURE LTD.

[2019] 10 S.C.R. 636 · 2019 INSC 873

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

Acceptance of the letter of award did not activate the arbitration clause in the unsigned draft project agreement under this bidding framework. The schedule treated the letter of award as an intermediate bidding step and reserved bidding disputes to Delhi courts until execution of the agreement. Provisions allowing termination and security forfeiture did not establish otherwise. The order appointing arbitrators was set aside.

Issues

  1. Whether acceptance of the letter of award incorporated the draft agreement’s arbitration clause despite the bidding-process jurisdiction clause.

Held

Result

Appeal allowed; High Court judgment appointing arbitrators set aside. Disputes at the letter-of-award acceptance stage under this framework lay before Delhi courts, not arbitration.

Judgment PDF: Supreme Court of India, [2019] 10 S.C.R. 636.