The High Court of Judicature at Bombay dismissed three arbitration appeals filed by Rajasthan State Co-op Oil Seed Growers Federation Ltd. (Tilam Sangh) challenging orders of the District Court Pune that upheld arbitral awards in favor of B.G. Shirke Construction Technology Pvt. Ltd. The dispute arose from construction contracts for silo facilities where Tilam Sangh engaged National Heavy Engineering Co-operative Ltd. (NHEC) as Project Management Consultant, who subsequently engaged Shirke as contractor. The core issue was whether Tilam Sangh could be held liable under arbitral awards despite lack of direct privity of contract with Shirke. The court held that the arbitral tribunal had jurisdiction to bind Tilam Sangh as principal, and the District Court's modification of the award to absolve NHEC while maintaining Tilam Sangh's liability was permissible under Section 34 of the Arbitration and Conciliation Act, 1996. All three appeals were dismissed with costs.
Case Title: High Court Dismisses Arbitration Appeals Upholding Arbitral Award Against Principal in Project Management Contract Dispute - No Jurisdictional Error Found in Tribunal's Decision
Citation: 2025 LawText (BOM) (11) 23
Case Number: Arbitration Appeal No. 47 of 2013 with Arbitration Appeal No. 48 of 2013 with Arbitration Appeal No. 49 of 2013
Advocate(s): Rajiv Narula, Tarang Jagtiani, Thangiani, Narula & Associates, Sukand Kulkarni, Archita Gharat, Prabhakar M. Jadhav
Date of Decision: 2025-11-03
The High Court dismissed all three arbitration appeals with costs, upholding the District Court's orders that maintained the arbitral award against Tilam Sangh while absolving NHEC from liability