M/S PSA MUMBAI INVESTMENTS PTE. LIMITED versus THE BOARD OF TRUSTEES OF THE JAWAHARLAL NEHRU PORT TRUST AND ANR.

M/S PSA MUMBAI INVESTMENTS PTE. LIMITED versus THE BOARD OF TRUSTEES OF THE JAWAHARLAL NEHRU PORT TRUST AND ANR.

There was no concluded contract between the parties at the stage of the bid process and Letter of Award; the arbitration clause in the draft Concession Agreement did not create an enforceable arbitration agreement as the Concession Agreement itself was never entered into. The impugned High Court judgment is set aside as the Letter of Award did not constitute a binding contract.

Parties
Appellant: M/S PSA Mumbai Investments Pte. Limited; Respondent No.1: Board of Trustees of the Jawaharlal Nehru Port Trust; Respondent No.2: Respondent No.2
Jurisdiction
India
Judgment Date
11 September 2018
Procedural Posture
Civil Appeal / Appeal From High Court Judgment in Arbitration Petition No. 1227 of 2016
Outcome
appeal allowed; High Court judgment set aside
Legal Topics
Arbitration Clause in Bidding Documents, Formation of Contract, Bid Process and Letter of Award, Jurisdiction of Courts During Bid Process
Arbitration Contract Arbitration Clause in Bidding Documents Formation of Contract Bid Process and Letter of Award Jurisdiction of Courts During Bid Process

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Parties

M/S PSA Mumbai Investments Pte. Limited

Appellant

Board of Trustees of the Jawaharlal Nehru Port Trust

Respondent No.1

Respondent No.2

Respondent No.2

Procedural Posture

Civil Appeal / Appeal From High Court Judgment in Arbitration Petition No. 1227 of 2016

Legal Issues

  1. 1 Whether an arbitration clause contained in a draft Concession Agreement included in bid documents forms a binding agreement between parties prior to execution of the Concession Agreement
  2. 2 Whether there was a concluded contract on issuance and acceptance of a Letter of Award

Ratio Decidendi

There was no concluded contract between the parties at the stage of the bid process and Letter of Award; the arbitration clause in the draft Concession Agreement did not create an enforceable arbitration agreement as the Concession Agreement itself was never entered into. The impugned High Court judgment is set aside as the Letter of Award did not constitute a binding contract.

Court Disposition

appeal allowed; High Court judgment set aside

Orders

  • Impugned judgment of High Court is set aside.
  • Order of learned Arbitrator is reinstated.