M/S. BUILD INDIA CONSTRUCTION SYSTEM versus UNION OF INDIA

M/S. BUILD INDIA CONSTRUCTION SYSTEM versus UNION OF INDIA

The amendment dated 4.9.1986 does not apply to the contract entered into between the parties in 1985; terms could not be varied except by mutual agreement. The arbitration clause applicable was the original, which did not require a reasoned award. Plea regarding requirement for reasoned award was not properly raised below and cannot be entertained at appellate stage.

Parties
Appellant: M/S. Build India Construction System; Respondent: Union of India
Jurisdiction
India
Judgment Date
07 May 2002
Procedural Posture
Civil Appeal / Appeal Before Supreme Court From Division Bench of Mumbai High Court
Outcome
Appeal allowed
Legal Topics
Arbitration Clause Interpretation, Effect of Contract Amendments, Requirement for Reasoned Arbitration Awards
Arbitration Contract Law Arbitration Clause Interpretation Effect of Contract Amendments Requirement for Reasoned Arbitration Awards

Case Brief

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Parties

M/S. Build India Construction System

Appellant

Union of India

Respondent

Procedural Posture

Civil Appeal / Appeal Before Supreme Court From Division Bench of Mumbai High Court

Legal Issues

  1. 1 Whether amendment dated 4.9.1986 imposing obligation for reasoned arbitration award applies to contract entered into in 1985
  2. 2 Whether respondent could unilaterally alter general conditions of contract without appellant's consent
  3. 3 Whether plea regarding obligation to give reasoned award can be raised at appellate stage

Ratio Decidendi

The amendment dated 4.9.1986 does not apply to the contract entered into between the parties in 1985; terms could not be varied except by mutual agreement. The arbitration clause applicable was the original, which did not require a reasoned award. Plea regarding requirement for reasoned award was not properly raised below and cannot be entertained at appellate stage.

Court Disposition

Appeal allowed

Orders

  • Judgment of Division Bench set aside
  • Decision of Single Judge making award a rule of the court restored