Authority: Supreme Court of India (Civil Appellate Jurisdiction)
Order Date: 14 July 2026
Case Overview
- Parties: Indian Hume Pipe Company Limited (appellant) and Bhilai Municipal Corporation (respondent).
- Work orders: Corp issued two work orders on 29‑Nov‑2016 and 22‑Jul‑2017 for design, laying, jointing, interconnection, testing and commissioning of clear water rising main under Bhilai Augmentation of Water Supply Scheme Part II and for design and construction of ten PHSR in Bhilai municipal areas.
- Completion: Indian Hume Pipe completed the works on 30‑Nov‑2020 and 04‑Aug‑2021 respectively.
- Payment issue: Corp approved release of GST reimbursement, RA Bill‑17 &‑18, retention money and hydro‑testing charges on 20‑Feb‑2022 and 20‑Sep‑2022 but failed to release the amounts.
- Representations: Appellant submitted multiple representations between 14‑Mar‑2024 and 01‑Jan‑2025 without response, leading to a writ petition under Article 226.
- High Court: On 19‑Jun‑2025 the Chhattisgarh High Court dismissed the writ, holding that disputed questions of fact could not be decided in a writ petition.
- Supreme Court: Condoned delay, granted special leave, and directed the matter to arbitration.
Final Outcome
- The Court appointed senior counsel Mr. Jaideep Gupta as arbitrator to adjudicate the dispute.
- Both parties may file claim statements and supporting documents, including affidavits already filed, before the arbitrator.
- Remuneration to be fixed by the arbitrator in consultation with the parties.
- The arbitrator is instructed to conclude proceedings within six weeks from the order date.
- The civil appeal and any pending interlocutory applications are disposed of.
Topics: Legal Dispute, Infrastructure Payments