Gauhati HC shatters 50-year record: ₹17 crore arbitration award in rly contract case validated

The case arises out of a dispute between pvt company, North-East Frontier Railways

- NARESH BISWANI

In a milestone verdict which continues to echo across India’s infrastructure and legal circles, the Gauhati High Court's 2022 verdict granting arbitration in a high-stakes railway contract case has led to a Rs 17 crore arbitral award—validated in its entirety despite initial protests by the Indian Railways.

‘The case arises out of a dispute between a private company (GSR Ventures pvt ltd) and the North-East Frontier Railways (NFR) over the construction of embankments and bridges under the Bairabi-Sairang Railway Project in the state of Mizoram. Tradition had it that arbitration of such disputes was thwarted by a controversial “20 percent ceiling” clause prohibiting the arbitration of any claim exceeding 20 percent of contract value.