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2022 Supreme(SC) 1179

A. S. BOPANNA, PAMIDIGHANTAM SRI NARASIMHA
State of Madhya Pradesh – Appellant
Versus
SEW Construction Limited – Respondent


Advocates appeared:
For the Petitioner(s): Mr. Saurabh Mishra, AAG Mr. Abhinav Shrivastava, Adv. Mr. Sunny Choudhary, AOR
For the Respondent(s): Dr. Menaka Guruswamy, Sr. Adv. Mr. D.Bharat Kumar, Adv. Mr. Aman Shukla, Adv. Mr. Yash S. Vijay, Adv. Mr. Siddhartha Sinha, Adv. Mr. Utkarsh Pratap, Adv. Mr. M. Chandrakanth Reddy, Adv. Mr. Sandeep Singh, AOR

JUDGMENT :

PAMIDIGHANTAM SRI NARASIMHA, J.

1. Leave granted.

2. This appeal is against the decision of the High Court of Madhya Pradesh in an Arbitration Revision No. 4 of 2009 under Section 19 of the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 19831 [hereinafter referred to as ‘the Adhiniyam’] whereby the award of the Arbitral Tribunal was upheld.

3. The short facts leading to the Arbitral Award and thereafter the decision of the High Court may be stated as under.

4. The State issued a tender notice2 [Tender Notice No. 1/1992-1993] for the construction of a Masonry Dam and eventually, Respondent No. 1 (hereinafter referred to as ‘the Contractor’) was selected as the successful bidder. A contract was entered into on 06.11.1993 for a total consideration of Rs. 1,22,81,86,600/- to be completed within a period of sixty months.

5. As the only issue arising for consideration, in this case, relates to the claim of escalation made by the Contractor, the relevant clause is extracted hereunder:

    “3.11(A) The quoted rates of the contractor shall be inclusive of the leads and lifts and in no case separate payment for leads or lifts to any materials including water shall be payable. Similarly no


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