In Ircon International Ltd v. Afcons Infrastructure Ltd, OMP (Comm) 279/2019, the Delhi High Court examined how delay and extension of time (‘EOT’) are to be assessed in construction contracts, particularly in the context of the ‘critical path’ while dealing with challenge to an arbitral award under Section 34 of the Arbitration and Conciliation Act 1996 (‘the Act’). The High Court’s observations regarding the critical path are of significant import for construction and infrastructure projects and related arbitration. 

The parties entered into a contract for construction of Tunnel T-74R on the Udhampur-Srinagar-Baramulla railway line. The project was to be completed within 33 months from the date of commencement, with 17 ‘key dates’ (KDs) prescribed under Appendix XV of the contract...