infrastructure disputes - The Legal Chamber

The Supreme Court held that tariff fixation for port facilities is a technical and expert-driven function, best adjudicated by specialized bodies like TAMP. It emphasized that contractual agreements cannot override statutory tariff-setting mechanisms under the Major Port Authorities Act, 2021. The Court remanded the matter to TAMP for fresh determination, underscoring the need for expert appraisal of tariff revisions and compliance with natural justice. Facts Of The Case: A bilateral agreement was executed in 1985 between Paradip Port Trust (now Authority) and Paradeep Phosphates Ltd. (PPL), then a public sector unit, for the exclusive use of a captive fertilizer berth. The agreement stipulated a tariff schedule, with a clause for future mutual enhancement. In 1993, the Port unilaterally...

The Supreme Court ruled that an arbitral award under the Arbitration and Conciliation Act 1996, cannot be annulled solely for lack of jurisdiction if no plea was raised before the tribunal under Section 16(2). It harmonized conflicting precedents, holding that objections under Section 34 must show strong grounds, and upheld the finality of awards where jurisdictional challenges were untimely. The judgment clarifies that the Madhya Pradesh Arbitration Act 1983, does not automatically override arbitration agreements unless jurisdictional objections are raised at the appropriate stage. Facts Of The Case: The case involved a contractual dispute between M/s Gayatri Projects Limited and Madhya Pradesh Road Development Corporation regarding road construction works in Madhya Pradesh. The parties...

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Supreme Court Ruling: Port Tariffs Must Be Set By Experts, Not Arbitrators

Supreme Court Clarifies: When Can an Arbitral Award Be Challenged for Lack of Jurisdiction?