Authority: Supreme Court of India
Order Date: 27-07-2026
Case Overview
- Parties: Paradip Port Trust (Petitioner) vs. M/s Modi Projects Limited (Respondent No.1). The Union of India was later impleaded as Respondent No.3.
- Background: An arbitration under Section 37 of the Arbitration and Conciliation Act, 1996 resulted in an award of Rs 13,66,01,820 (plus interest) in favour of Modi Projects Ltd. The award was challenged before the Commercial Court under Section 34 and dismissed; the appeal before the High Court of Orissa (dated 26‑08‑2025) was also dismissed.
- The High Court observed that the respondent could approach the “Vivaad se Vishwas II” contractual disputes scheme (2023) to seek a reduced settlement.
- The petitioner filed Special Leave Petitions (C) Nos.32919‑32920/2025 before this Court, contending that the lower courts’ orders were non‑speaking and that the scheme should not be forced upon the Trust.
- The Court heard counsel including Solicitor General Tushar Mehta, Additional Solicitor General K.M. Nataraj (Union of India), and senior counsel Navin Pahwa for the respondent.
- Earlier Supreme Court orders (28‑01‑2026 and 19‑03‑2026) directed the Ministry of Ports, Shipping & Waterways to clarify whether the respondent is entitled to the scheme’s benefit and to file an affidavit.
- The Ministry issued letters dated 09‑03‑2026 and 13‑03‑2026 referencing the case and requesting status updates.
- The petitioner’s letter dated 19‑02‑2026 argued that the award was perverse, citing lack of evidence for loss of overheads (Rs 2,20,23,800) and loss of profit (Rs 6,31,94,400), and questioned the applicability of the scheme.
Final Outcome
- The Court holds that the “Vivaad se Vishwas II” scheme applies to the present dispute and the respondent (Modi Projects Ltd.) is entitled to its benefit.
- The amount payable to the respondent shall be determined by the petitioner (Paradip Port Trust) in accordance with the scheme and must be paid within two months from the date of this order.
- The Union of India, through an affidavit dated 06‑05‑2026, affirmed that the scheme applies and that the final determination must be undertaken by the petitioner.
- The Ministry of Ports, Shipping & Waterways is directed to file an affidavit within one week clarifying its stance; a copy is to be served on all counsel.
- The cause title is to be amended to include the Union of India as Respondent No.3, and notice is to be issued to this newly impleaded party, returnable on 07‑05‑2026.
- All pending applications, if any, are disposed of.
Topics: Court Order, Arbitration Dispute, Vivaad se Vishwas II Scheme