Tag: Contingent Contract

Model Litigant?: Supreme Court Slams State Agency for Derailing 3-Year Arbitration Process
Supreme Court

Model Litigant?: Supreme Court Slams State Agency for Derailing 3-Year Arbitration Process

The Supreme Court held that an arbitration agreement survives even if the unilateral appointment mechanism is invalid; such offending portions are severable. Courts cannot review Section 11 orders absent patent error. Joint Section 29A extensions constitute waiver under Section 4 but cannot cure Section 12(5) ineligibility, which requires express post-dispute written waiver. Non-speaking SLP dismissal does not affirm underlying judgment Facts Of The Case: The dispute originated from a contract dated 04.03.2014 awarded by Respondent No. 1, Bihar Rajya Pul Nirman Nigam Limited, to the appellant, Hindustan Construction Company Limited, for construction of a bridge over the River Sone in Bihar. The contract contained Clause 25 providing for arbitration. The appellant had previously inv...
Supreme Court Backs Discom: Upholds Right to Encash Bank Guarantee in Delayed Solar Project
Supreme Court

Supreme Court Backs Discom: Upholds Right to Encash Bank Guarantee in Delayed Solar Project

The Supreme Court held that the Power Purchase Agreement's explicit terms govern the parties' rights. The encashment of the performance bank guarantee was valid as the developer failed to seek an extension under the contractual mechanism or issue a mandatory Force Majeure notice. Regulatory commissions cannot rewrite the contractual risk allocation or grant remedies outside the agreed framework. Facts Of The Case: The dispute arose from a Power Purchase Agreement (PPA) executed between Chamundeshwari Electricity Supply Company Ltd. (CESC) and Saisudhir Energy Pvt. Ltd. for a 10 MW solar power project. The PPA stipulated that the developer was to achieve the Commercial Operation Date (COD) within 12 months, preceded by fulfilling certain Conditions Precedent within 240 days. A critical pr...