VidhiSangh

Supreme Court of India · 14/11/2019

UNION OF INDIA versus PRADEEP VINOD CONSTRUCTION COMPANY

[2019] 17 S.C.R. 64 · 2019 INSC 1241

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Summary

In railway contract disputes invoked before the 2015 arbitration amendment, the Supreme Court set aside appointments of independent arbitrators made without following the agreed mechanism. It directed appointment under clause 64(3) of the contracts. The effect of no-claim certificates and supplementary settlements, disputed as products of compulsion, was left for the arbitrator.

Issues

  1. Whether the pre-amendment contractual appointment procedure should govern these references.
  2. Whether the Court should decide the disputed effect of no-claim certificates and supplementary agreements.

Held

Result

Appeals allowed and the High Court appointments set aside. Railways was directed to appoint under clause 64(3) within one month, notifying the contractors. Claims were due within six weeks of notification and replies within four further weeks. Arbitration was to proceed with a sufficient hearing and be decided expeditiously, preferably within four months.

Judgment PDF: Supreme Court of India, [2019] 17 S.C.R. 64.