Judicial Review of Arbitral Awards and Contractor Entitlement to Loss of Profits in Municipal Contracts

sketch of the Bombay High Court
Case
MUNCIPAL CORPORATION OF GR. MUMBAI v. GAMMON INDIA LIMITED (Bombay High Court, 21-09-2026)
Law
Arbitration and Conciliation Act, Companies Act, Indian Contract Act.

Highlights of the Judgment:

  • Examination of the scope of judicial interference under Section 34 of the Arbitration and Conciliation Act, 1996, regarding patent illegality and perversity.
  • Analysis of whether an arbitral award can be partially set aside for distinct and severable claims under the doctrine of severability.
  • Evaluation of contractor entitlement to loss of profit when a contract is prematurely terminated due to municipal administrative lapses.
  • Interpretation of General Conditions of Contract regarding the non-arbitrability of tender preparation costs and bidding risks.
  • Judicial review standards concerning an arbitrator's factual findings on bank guarantee commission and incidental interest components.