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2026 Supreme(Cal) 33

IN THE HIGH COURT AT CALCUTTA
SABYASACHI BHATTACHARYYA, BISWAROOP CHOWDHURY, JJ.
Group General Manager of Indian Railways Catering and Tourism Corporation Ltd. and Another – Appellants
Versus
Araha Hospitality Pvt. Ltd. – Respondent 
FMAT Nos. 130, 170 of 2026, CAN Nos. 1, 2 of 2026
Decided On : 21-05-2026

Advocates Appeared:
For the Appellants : Arijit Bardhan, Sarosij Dasgupta, Sabyasachi De, Afreen Begum
For the Respondents: Chayan Gupta, Meghnath Dutta, Srijani Mukherjee, Lalratan Mandal, Puja Mondal

In the absence of an explicit contractual provision, courts cannot mandate a contract extension; injunctive relief is improper where damages are an adequate remedy. Furthermore, an unsuccessful participant in a tender process is estopped from challenging the process after failing to secure the contract.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 9, 34, 37 - Code of Civil Procedure, Order XLI Rule 11 - Appellate Side Rules, Chapter V, Rule 17 - Maintainability of appeal - Determination of matters - Held, appeals under Section 37 (except those setting aside arbitral awards under Section 34) require admission hearing under Order XLI Rule 11 of the Code of Civil Procedure. (Paras 12, 13, 14)

(B) Contractual Dispute - Injunction - Claim for extension of contract - Absence of specific contractual clause - Courts cannot rewrite contracts to create rights not provided for in the agreement; where contract is determinable, remedy lies in compensation, not injunctive relief or contract extension. (Paras 64-67, 73)

(C) Tender Process - Estoppel - A party having participated in a fresh tender process and becoming unsuccessful cannot be permitted to challenge the outcome of such tender or the underlying process at a belated stage. (Paras 71, 72)

Facts of the case:
The appellants challenged an ad-interim injunction granted in a proceeding under the Arbitration Act, which restrained them from acting upon a new tender. The respondent sought an extension of their existing contract, citing train cancellations as the basis. The appellants contended that the contract lacked a provision for extension on such grounds and that the respondent had failed in the competitive bidding process for the new contract.

Findings of Court:
The Court held that the contract did not contain any provision for extending the tenure due to train cancellations, and that the respondent's remedy, if any, for such grievances was limited to seeking damages. The Court further observed that granting such an extension would effectively rewrite the contract and disrupt third-party rights accrued through a transparent tender process.

Issues: The main issues were the procedural classification of the appeal under the Appellate Side Rules, the validity of granting an injunction to extend an expired contract without specific enabling provisions, and the eligibility of a failed tender participant to challenge the bidding outcome.

Ratio Decidendi: In the absence of an express provision in the contract, a court cannot mandate an extension of a fixed-term agreement; such disputes are pecuniary in nature. Furthermore, the doctrine of acquiescence and estoppel prevents a participant in a selection procedure from challenging the process only after failing to secure the contract.

Result: Appeals allowed; impugned orders set aside.

Table of Content
1. jurisdictional determination and interpretation of appellate side rules for arbitration appeals. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
2. condonation of delay based on diligent pursuit of parallel remedies in arbitration proceedings. (Para 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39)
3. parties' contentions regarding contractual extensions and tender validity in railway catering. (Para 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62 , 63)
4. injunctions cannot be granted where no contractual provision for extension exists and third-party rights have accrued. (Para 64 , 65 , 66 , 67 , 68 , 69 , 70 , 71 , 72 , 73 , 74 , 75 , 76 , 77 , 78 , 79 , 80 , 81 , 82 , 83 , 84)

JUDGMENT :

SABYASACHI BHATTACHARYYA, J.

1. At the outset, learned counsel for the respondent raises an objection as to this court having determination to take up the matter, since it is an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to "the 1996 Act") against an order passed under Section 9 of the said Act.

2. Learned counsel for the respondent points out that a different Coordinate Bench has blanket determination in respect of appeals under the 1996 Act, including applications connected thereto.

3. Learned counsel for the appellants, on the other hand, refers to Rule 17 of Chapter-V of the Appellate Side Rules of this Court.

4. In Clause (a) thereof, it has been contemplated that an application preferred against orders setting aside arbitral awards under Section 34 of the 1996 Act would be treated as a first appeal against a deemed decree whereas under Clause (b), all appeals under Section 37 of the 1996 Act, except appeals against orders setting aside an arbitral award under Section 34, would have to be posted for hearing under Order XLI Rule 11 of the Code of Civil Procedure.

5. A conundrum arises since while so stipulating, both the said Clauses refer to Section 37(1)(b) of the 1996 Act instead of Section 37(1)(c) of the 1996 Act, the latter pertaining to appeals against orders setting aside or refusing to set aside an arbitral award under Section 34 whereas Clause (b) refers to appeals against Section 9 orders.

6. Learned counsel appearing for the appellants, however, cites a judgment of a coordinate Bench of this court, rendered in Murshidabad Zilla Parishad vs. The Asian Health Care Development Private Limited & Ors. passed in FMA No. 816 of 2025, where such conundrum was clarified.

7. In the said judgment, the coordinate Bench observed that Clause (a) of Rule 17 of the Appellate Side Rules enumerates the categories/classes of appeals which do not require admission under Order XLI Rule 11 of the Code of Civil Procedure whereas Clause (b) indicates appeals which require admission.

8. In the reading of the coordinate Bench, an appeal under the Arbitration and Conciliation Act, 1996 excepting an appeal under Section 37(1)(b) [which is now Section 37(1)(c)] from an order setting aside an arbitral award requires admission.

9. Accordingly, the coordinate Bench, despite having determination to take up arbitration appeals, released the matter to be placed before the Bench having determination to hear appeals under Order XLI Rule 11 of the Code of Civil Procedure.

10. Simultaneously, the coordinate Bench observed that the Hon'ble the Chief Justice may consider amendment of Rule 17 of Chapter V of the Appellate Side Rules, to the effect that Section 37(1)(b) needs to be replaced by Section 37(1)(c) of the 1996 Act and as to why, where a statute provides for an appeal as a matter of right, such appeal should require to be admitted under Order XLI Rule 11 of the Code of Civil Procedure.

11. Even independently of the coordinate Bench judgment, we find that determinations have been allocated by the Hon'ble the Chief Justice to separate Benches for takin

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