National Highways Authority Of INDIA vs. Sahakar Global Limited
Held
The Court upheld the arbitral award, finding that the implementation of GST constituted a 'change in law' and a force majeure event. The Court noted that NHAI itself had issued a circular treating GST promulgation as a change in law for its contractors.
Facts
The National Highways Authority of India (NHAI) challenged an arbitral award that held it liable to pay compensation to Sahakar Global Limited. The compensation was for losses incurred due to reduced toll collections after the implementation of GST, which the arbitrator deemed a force majeure event.
Key Issues
Whether the implementation of GST qualified as a 'change in law' and a force majeure event under the contract, and if the arbitrator's findings on traffic volume reduction were sound.
Sections Cited
Section 34
AI-generated summary — verify with the full judgment below
O.M.P. (COMM) 486/2020 VIA VIDEO CONFERENCING $~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: 29.09.2020
+ O.M.P. (COMM) 486/2020
NATIONAL HIGHWAYS AUTHORITY OF INDIA ..... Petitioner Through Mr.Balendu Shekhar, Adv. with Mr.Vipul Singh, Adv. & Mr.Rajkumar Maurya, Adv.
versus
SAHAKAR GLOBAL LIMITED
..... Respondent Through Mr.Neeraj Kishan Kaul, Sr. Adv. with Mr.Rakesh Sinha, Adv., Mr.Pawan Kumar, Adv. & Mr.Ramchandra Madan, Adv.
CORAM: HON’BLE MS. JUSTICE REKHA PALLI
REKHA PALLI, J (ORAL)
I.A Nos.8712/2020 & 8715/2020
Allowed, subject to all just exceptions.
The application stands disposed of.
IA No.8714/2020
This is an application seeking condonation of delay in re-filing the petition. In the light of the fact that the delay occasioned is only of 2 days, the application is allowed.
The application stands disposed of.
Digitally O.M.P. (COMM) 486/2020
The judgment continues below.
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