Authority: Supreme Court of India
Order Date: 14-08-2026
Case Overview
- Parties: Haldia Development Authority & ors (petitioner) vs M/s Sarbani Prasad Chatterjee & Sons (respondent).
- Background: Under a Notice Inviting Tender, petitioner issued a work order dated 11‑01‑2013 valued at approximately Rs 3.51 crore for construction work. Disputes arose over project timelines. Respondent filed writ petition WPA No.23506/2017 in the Calcutta High Court seeking release of payment under the final bill and security deposits.
- High Court proceedings: Single Judge dismissed the writ on 06‑05‑2025, holding that factual disputes existed. Division Bench on 08‑04‑2026 issued an interim order directing petitioner to pay Rs 90,00,000 to respondent and barred retention of earnest money, security deposit and 10% liquidated damages. Review petition dismissed on 11‑05‑2026.
- Supreme Court: Stayed the High Court orders on 15‑05‑2026 and referred parties to mediation, which subsequently failed. Both parties consented to refer the dispute to arbitration under the Arbitration & Conciliation Act, 1996, and requested the Court to appoint an arbitrator.
Final Outcome
- The Court appointed Mr Rishav Banerjee, Advocate, Kolkata, as arbitrator. Parties are to contact the arbitrator; fees will be as per the Fourth Schedule of the A&C Act.
- The interim order dated 15‑05‑2026 shall continue until the arbitrator modifies it. The arbitrator will decide any interim applications independently of observations made in the High Court orders or this Court’s order.
- Consequently, FMA No.1601/2025 stands disposed, all contentions of the parties remain open, the Special Leave Petitions are disposed, and any pending applications, if any, shall also stand disposed.
Topics: Arbitration, Construction Contract Dispute