AI Overview...
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Diesel Price Escalation Clause - Several sources specify that contracts often include a clause for diesel price escalation, typically triggered by increases beyond a certain threshold (e.g., 10 paise per litre above a base rate). When triggered, the escalation is calculated proportionally, such as 75 paise per MT for every 10 paise increase in diesel price Regional P. F. Commissioner VS SIEL Foods and Fertilizer Industries & Anr. - Delhi, Sainik Mining and Allied Services Limited VS Western Coalfields Limited - Bombay, UNION OF INDIA VS Cementone - Calcutta, CONTINENTAL LTD. VS INDIAN OIL CORPORATION LTD. - Delhi.
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Conditions for Escalation - Many contracts stipulate that escalation is only applicable if diesel prices increase due to specific reasons, such as government orders or market fluctuations, and often require that such increases be documented or based on official price indices Continental Transport Organization Pvt. Ltd. VS Oil & Natural Gas Corporation Ltd. - Bombay, Union of India VS Freight Carriers - Gauhati.
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Contractual Variability - Some contracts explicitly mention that rates are fixed and firm, with no escalation permitted unless specified (e.g., in case of diesel or other particular items). Courts and arbitral tribunals have upheld these clauses, emphasizing adherence to contractual terms unless explicitly modified Rajasthan States Mines And Minerals LTD. VS Eastern Engineering Enterprises - Supreme Court, M/S RAJ CONSTRUCTION COMAPNY vs STATE OF CHHATTISGARH - Chhattisgarh.
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Disputes and Arbitrations - Disputes over diesel escalation claims often arise when parties interpret the scope of escalation clauses differently. Arbitrators and courts have examined whether the clause applies, the basis of diesel price changes, and whether the escalation was justified under contract terms UNION OF INDIA VS Cementone - Calcutta, Chief Engineer (Construction), Gauge Conversion, Southern Railway, Chennai VS Swarna & Co. , Represented by its Managing Partner, B. Venugopal Reddy - Madras.
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Legal and Judicial Viewpoints - Courts generally uphold the contractual provisions regarding price escalation, provided they are clear and agreed upon. For example, courts have refused escalation claims where no explicit clause existed, or where the contract stipulated fixed rates, emphasizing the importance of contractual clarity M/S RAJ CONSTRUCTION COMAPNY vs STATE OF CHHATTISGARH - Chhattisgarh, Union of India VS Freight Carriers - Gauhati.
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Summary - Diesel rate escalation works contracts typically include specific clauses that define when and how rates can be increased due to diesel price fluctuations. These clauses are upheld by courts and arbitral tribunals if properly incorporated and clearly articulated, with escalation often linked to official price changes or thresholds. Disputes tend to revolve around the interpretation and applicability of these clauses, with legal rulings favoring contractual adherence unless exceptions are explicitly provided Regional P. F. Commissioner VS SIEL Foods and Fertilizer Industries & Anr. - Delhi, Continental Transport Organization Pvt. Ltd. VS Oil & Natural Gas Corporation Ltd. - Bombay.
References: - Regional P. F. Commissioner VS SIEL Foods and Fertilizer Industries & Anr. - Delhi - Rajasthan States Mines And Minerals LTD. VS Eastern Engineering Enterprises - Supreme Court - UNION OF INDIA VS Cementone - Calcutta - Sainik Mining and Allied Services Limited VS Western Coalfields Limited - Bombay - M/s.Simplex Infrastructure Limited vs Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) - Madras - CONTINENTAL LTD. VS INDIAN OIL CORPORATION LTD. - Delhi - M/S RAJ CONSTRUCTION COMAPNY vs STATE OF CHHATTISGARH - Chhattisgarh - Continental Transport Organization Pvt. Ltd. VS Oil & Natural Gas Corporation Ltd. - Bombay - Chief Engineer (Construction), Gauge Conversion, Southern Railway, Chennai VS Swarna & Co. , Represented by its Managing Partner, B. Venugopal Reddy - Madras - Union of India VS Freight Carriers - Gauhati
Search Results for "Diesel Rate Escalation Works Contract"
2014 0 Supreme(Del) 2798 • India - Delhi
V.KAMESWAR RAO
PRICE ESCALATION : (Only in case of RFO from Mathura) ... In case, there is any increase in Diesel Oil Prices, by more than 10 paise per litre on the existing price of Rs. 5.05 per litre, the contract rate shall be increased by 75 paise per MT for every 10 paise increase or pro-rate ... The payment was to be paid in terms of clause 7, which is reproduced hereunder and the contract also stipulated a price escalation, which is also reproduced as under: ... “7. ... There....
1999 8 Supreme 295 • India - Supreme Court
M.B.SHAH, D.P.WADHWA
the rate under the contract was firm and final and no escalation in rates except in case of diesel would be granted. ... to decide all claims arising out of contract-Arbitrator while noting that in terms of contract rate was fixed, however passed award ... aside of-Ground that arbitrator passed award in excess of his jurisdiction and thus legally misconducted himself-Turn-key mining contract-Rate ... Claim for Escalation#H....
2011 0 Supreme(Cal) 180 • India - Calcutta
I.P.MUKERJI
ARBITRATION - Setting aside of award - Claim for escalation of wages, price of stone dust and diesel, loading after sunset, and ... The respondent claimed escalation of wages, price of stone dust, diesel, loading after sunset, and prolonged establishment beyond ... Whether the claims for escalation of wages, price of stone dust, diesel, loading after sunset, and prolonged establishment were permissible ... The contract was a composite contract for sa....
2022 0 Supreme(Bom) 141 • India - Bombay
A.S.CHANDURKAR, M.S.JAWALKAR
The court also noted that the price variation clause in the contract, Clause 19.04.1, governed the increase in diesel prices and ... modification of the diesel component impermissible. ... The court found that the termination was in accordance with the terms of the contract, specifically Clause 9(a) to 9(c) and Clause ... In Clause 21 of the said work order, the rate of diesel as on 15.03.2016 was indicated at Rs.52.37 Ps. per litre. It was stated that the escalation/....
2025 Supreme(Online)(Mad) 64413 • India - IN THE HIGH COURT OF JUDICATURE AT MADRAS
MR. SENTHILKUMAR RAMAMOORTHY, J
(Paras 1-80) ... ... (B) Contracts - Claims for additional work - Escalation claims and idle time ... claims were held not maintainable as per contract terms, as various causes of delay were attributable to Defendant and counterclaims ... Defendant's substantiation for counterclaims and the Plaintiff's entitlement to compensation and completion certificates based on contract ... Although this contract did not stipulate escalation, learned counsel contended that escalation#H....
2008 0 Supreme(Del) 293 • India - Delhi
S.RAVINDRA BHAT
Arbitration - Transportation Contract - Arbitration and Conciliation Act 1966 - [ESCALATION] - [Transportation Contract] - [Section ... clause of the contract on account of a hike in the price of high speed diesel on 5.10.1999. ... The petitioner claimed benefit of an escalation clause in the contract for revision in transportation rates due to an increase in ... ... (d) Frequently for permitting escalation, de-escalation of the ra....
2025 Supreme(Online)(CHH) 64 • India - High Court of Chhattisgarh
Shri Ramesh Sinha, CJ, Shri Ravindra Kumar Agrawal, J
(Paras 2-8) ... ... (B) Contract Law - Price escalation clauses - The court emphasized that the ... ... ... Ratio Decidendi: The court ruled that the petitioner had agreed to the contract terms and the escalation clause's application ... ... ... Findings of Court: ... The court found that the petitioner had agreed to the terms of the contract and declined to interfere ... price of diesel was 102.84 per liters. ... The probable amount of contract worth Rs. 9,37,....
2015 0 Supreme(Bom) 564 • India - Bombay
R.D.DHANUKA
required escalation/de-escalation to be based on changes in the price of diesel by an order of the Government of India. 2. ... The contract included a provision for escalation/de-escalation of freight/transportation charges based on changes in the price of ... diesel. ... Escalation/De-escalation shall be worked out for the actual effect on the expenses on account of diesel consumption with increase/decrease in the....
2019 0 Supreme(Mad) 2645 • India - Madras
SENTHILKUMAR RAMAMOORTHY
were the validity of the claims made by the Contractor and the interpretation of the relevant clauses in the General Conditions of Contract ... arose between the Contractor and the Railways in relation to the execution of works in connection with the doubling of track between ... the Arbitral Awards partly as regards the amounts awarded against the claims for idling of men and materials, overheads, enhanced rate ... Union of India 1989 Supp.(1) SCC 368, which is a case where the contract was silent and did not prohibit t....
2008 0 Supreme(Gau) 313 • India - Gauhati
B.D.AGARWAL
Fact of the Case: The respondent was awarded a contract for transportation works. ... price escalation without an express clause. ... the limitations of granting price escalation without an express clause. ... I also find from the contract agreement that the work of transportation was allotted on fixed rate basis. Admittedly, there was no clause in the contract agreement for price escalation. ... continued to complete the work and despite receiving....
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