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06 Feb, 2026
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Pratibha Industries Limited (In Liquidation) Thr Its Liquidator, Mr. Anil Mehta Vs. Navi Mumbai Municipal Corporation, Through Its Executive Engineer (Morbe)
As per case facts, a project by NMMC awarded to Pratibha for pipeline laying under a deferred payment scheme faced significant delays in obtaining right of way, extending a one-year
...project to two years. Pratibha claimed increased financing costs and price escalation. The Learned Principal District Judge, Thane, set aside the original arbitral award that had partly allowed these claims. This Appeal challenges that order. The question arose whether the Section 34 Court correctly intervened, quashing the Arbitral Award, especially concerning contract interpretation (FIDIC versus Tender Terms) and right-of-way responsibility. Finally, the Supreme Court found the Section 34 Court overstepped its review scope, stating the Arbitral Tribunal's interpretation was plausible and reasonable, based on trade usage and business efficacy. Thus, the Impugned Judgment is set aside, and the Arbitral Award is revived.
Bench
Applied Acts & Sections
Section 28
–The Arbitration And Conciliation Act, 1996
Section 34
–The Arbitration And Conciliation Act, 1996
Section 37
–The Arbitration And Conciliation Act, 1996
Legal Notes
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