MCDERMOTT INTERNTIONAL INC. versus BURN STANDARD CO. LTD. AND ORS.

MCDERMOTT INTERNTIONAL INC. versus BURN STANDARD CO. LTD. AND ORS.

Partial awards, though not named in the 1996 Act, are treated as interim awards and can be final for matters covered. Jurisdictional objections must be raised before arbitrator. Time was not of essence in this construction contract as evidence and conduct showed extension provisions and no timely objection. Quantification of damages can use accepted formulae; proof of actual damages required but not solely by invoice. Consequential damages exclusion in main contract does not bar direct claims under sub-contract. Substitution claim for heavier material not valid due to acceptance sub-silentio and ONGC's refusal of payment. Interest rate reduced to 7.5% due to long lapse of time. Exchange...

Parties
Appellant: MCDERMOTT INTERNATIONAL INC.; Respondent: BURN STANDARD CO. LTD.; Third Party: ONGC
Jurisdiction
India
Judgment Date
12 May 2006
Procedural Posture
Application Under Section 34 of Arbitration and Conciliation Act, 1996 / Supreme Court Final Disposition of Challenge to Arbitral Awards
Legal Topics
Partial Award, Jurisdiction, Time Is Essence, Damages Quantification, Interest, Novation, Acceptance Sub Silentio, Consequential Damages
Arbitration Contract Partial Award Jurisdiction Time Is Essence Damages Quantification Interest Novation +2 more

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Parties

MCDERMOTT INTERNATIONAL INC.

Appellant

BURN STANDARD CO. LTD.

Respondent

ONGC

Third Party

Procedural Posture

Application Under Section 34 of Arbitration and Conciliation Act, 1996 / Supreme Court Final Disposition of Challenge to Arbitral Awards

Legal Issues

  1. 1 Nature and validity of 'partial' awards under Arbitration and Conciliation Act, 1996
  2. 2 Jurisdictional objections to arbitral awards
  3. 3 Time being of essence in construction contracts

Ratio Decidendi

Partial awards, though not named in the 1996 Act, are treated as interim awards and can be final for matters covered. Jurisdictional objections must be raised before arbitrator. Time was not of essence in this construction contract as evidence and conduct showed extension provisions and no timely objection. Quantification of damages can use accepted formulae; proof of actual damages required but not solely by invoice. Consequential damages exclusion in main contract does not bar direct claims under sub-contract. Substitution claim for heavier material not valid due to acceptance sub-silentio and ONGC's refusal of payment. Interest rate reduced to 7.5% due to long lapse of time. Exchange...