VidhiSangh

Supreme Court of India · 22/02/2021

HYDROELECTRIC PROJECT AUTHORITY, BHUTAN versus LARSEN & TOUBRO LTD.

[2021] 1 S.C.R. 587 · 2021 INSC 108

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Summary

The Supreme Court modified an arbitration appointment order in accordance with the parties’ consensus that disputes under their Bhutan hydroelectric-project contract would be arbitrated under Bhutan’s Alternative Dispute Resolution Act, 2013, with Thimphu as the seat. The already constituted tribunal was acceptable to the authority. It could hold some hearings at convenient venues after consulting the parties. The Court did not independently resolve the competing interpretations of the original contract’s governing-law and seat provisions.

Issues

  1. What modification to the arbitration arrangement followed from the parties’ agreement on Bhutan law and a Thimphu seat.

Held

Result

Civil appeal disposed of by modifying the High Court order in terms of the parties’ consensus; no costs. Pending applications disposed of.

Judgment PDF: Supreme Court of India, [2021] 1 S.C.R. 587.