Setting Aside an Arbitral Award based on the Interpretation of Contract: Delhi High Court.
In a recent decision of ONGC Ltd. v. JSIW Infrastructure Pvt. Ltd. (FAO (OS) (COMM) 59/2024), the Delhi High Court upheld the decision of the Section 34 Court to set aside the Award as the arbitrator's interpretation of the contract was not a plausible one. Facts of the case: a section 37 appeal was filed against the decision of the Section 34 Court, wherein the Award was set aside. The Award was set aside for being patently illegal and being in disregard of the terms of the contract. Disputes had arisen in the case basis a Pipeline Replacement Project on lump sum basis (the " Project " ) entered into between the parties. The work involved installation and commissioning of line pipes. After the Notice of Award, there arose a difficulty on part of the Respondent in procuring line pipes domestically, thereby, necessitating the Respondent to pay Countervailing Duty (' CVD ') on import of the line pipes. Respondent had sought amendment to the contract seeking reim...