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2019 Supreme(SC) 589

ROHINTON FALI NARIMAN, VINEET SARAN
Ssangyong Engineering & Construction Co. Ltd. – Appellant
Versus
National Highways Authority of India (NHAI) – Respondent


Advocates Appeared:
For Petitioner(s): Ms. Rashmeet Kaur, Adv. Mr. Navin Kumar, Adv. Ms. Arpana Majumdar, Adv. Mr. Ashwani Kumar, AOR
For Respondent(s): Mr. S. Nandakumar, Adv. Ms. Deepika Nandakumar, Adv. Mr. Naresh Kumar, AOR

Judgement Key Points

No, the judgment does not address or say anything about the applicability of the Arbitration and Conciliation Act, 1996 to arbitrations under the Kerala Cooperative Societies Act or any similar statutory schemes.

The judgment is confined entirely to an international commercial arbitration under the 1996 Act between a Korean company and NHAI, analyzing Sections 18, 24(3), 26, and 34(2)(a)(iii) exclusively in that context. (!) (!) (!) (!) (!) (!) (!) (!) (!)

There is no mention whatsoever of: - Kerala Cooperative Societies Act - Any cooperative society laws - Statutory arbitrations generally - Exclusion/override of the 1996 Act by special statutes - Quasi-judicial proceedings under other laws

The judgment contains no discussion or judgment on whether the 1996 Act applies to statutory dispute resolution mechanisms like those under cooperative society acts. It makes no reference to self-contained codes, Registrar-appointed arbitrators, or remedies under Article 226/227. (!) (!) (!) (!)

No references in the document support the position that statutory arbitrations under special laws exclude the 1996 Act. The analysis applies only to arbitrations governed by the 1996 Act itself.


JUDGMENT :

R.F. NARIMAN, J.

1. Leave granted.

2. The respondent, National Highways Authority of India [“NHAI”], invited bids for construction of a four-lane bypass on National Highway 26 in the State of Madhya Pradesh. The appellant’s bid was accepted vide its letter of acceptance dated 30.12.2005, for a total contract value of INR 219,01,16,805/-. The appellant before us is a company registered under the laws of the Republic of Korea, whereas the respondent is a Government of India undertaking, responsible for construction of National Highways throughout the territory of India. The components used in execution of work for which price adjustment was payable to the appellant are labour, plant and machinery, petroleum, oil and lubricant (POL), cement, steel, bitumen, and other local materials. Price adjustment for four of these components, i.e., cement, steel, plant and machinery, and other local materials was agreed to be calculated as per a formula given in sub-clause 70.3 of the contract. The relevant portion of sub-clause 70.3 states as under :

“ii. Adjustment for Cement Compon
















































































































































































































































































































































































































































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