Authority: High Court at Calcutta, Commercial Division

Order Date: 23 June 2026

Case Overview

  • Parties: Rajpath Contractors and Engineers Ltd (Petitioner) vs Union of India and another (Respondent).
  • Contract: Tender for "Construction of New Bridge No. 172 over river Brahmani (2×9×30.5 m PSC Box Girder) with pile foundation" on Eastern Railway, agreement dated 05‑01‑2009.
  • Work Completion: Project completed on 31‑05‑2015; final escalation bill and security deposit released on 22‑10‑2020.
  • Claim: On 03‑05‑2023 the petitioner raised claims of Rs 38,07,04,780 and sought appointment of an Arbitral Tribunal under Section 11 of the Arbitration and Conciliation Act, 1996.
  • Section 12(5) Waiver: Respondent asked petitioner to waive Section 12(5); petitioner declined on 07‑06‑2023.
  • Initial Arbitration: Court constituted a three‑member Arbitral Tribunal on 06‑10‑2023 (AP No. 637/2023). The Tribunal terminated proceedings on 13‑05‑2024 under Section 16, deeming the disputes “excepted matters” per Clause 43(2) and Clause 63 of the General Conditions of Contract (GCC).
  • Appeal: Petitioner appealed (AO (Com)/14/2024). The High Court set aside the Tribunal’s order on 19‑08‑2024, holding the disputes are arbitrable and that the No Claim Certificate does not per se determine excepted‑matter status.
  • Legal Submissions:
  • Petitioner argued that a No Claim Certificate, even if issued, does not bar arbitration; relied on Union of India v. Parmar Construction Co. (2019 15 SCC 682).
  • Respondent contended the Certificate was issued after final payment, thus not coerced, and that the disputes are barred by GCC Clauses 43(2), 63, 64(i).
  • Court noted that the earlier judgment did not finally decide the validity of the Certificate; the issue remains for the Arbitral Tribunal.
  • Supreme Court Precedents Cited:
  • Parmar Construction Co. – No Claim Certificate does not automatically preclude arbitration; the question of duress is arbitrable.
  • SBI General Insurance Co. Ltd. v. Krish Spinning (2024 SCC OnLine SC 1754) – Section 11 referral courts examine only the existence of a valid arbitration agreement, not merits or preliminary objections.

Final Outcome

  • The Court allows the petition and constitutes a new Arbitral Tribunal comprising:

1. Justice Pinaki Chandra Ghose (Retd.) – Presiding Arbitrator

2. Ms. Ritzu Ghosal, Senior Advocate

3. Mr. Saptangshu Basu, Senior Advocate

  • The Tribunal is empowered to adjudicate all disputes arising from the 05‑01‑2009 Agreement, including the effect and validity of the No Claim Certificate.
  • Parties must furnish disclosures under Section 12 of the Arbitration and Conciliation Act, 1996.
  • Tribunal fees will be governed by the Fourth Schedule of the Act unless otherwise agreed.
  • The petition is allowed in the above terms.

Topics: Arbitration, Construction Contract