SC criticises Arbitral Award, calls fresh hearing on SE Railway dispute
RAILWAYS & METRO RAIL

SC criticises Arbitral Award, calls fresh hearing on SE Railway dispute

The Supreme Court strongly criticised an arbitral award instructing the South Eastern Railway to pay Rs 13.01 billion to a private firm, asserting that such misuse of public funds cannot be tolerated. The bench, led by Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra, expressed initial dissatisfaction with the sole arbitrator's decision, stating, "Less said the better. As judges, we also know a lot of things."

Expressing discontent with the arbitral award, the Chief Justice remarked, "I am not happy with the arbitral award. Let the case go before a dispassionate arbitrator and let this be heard again. If Railways lose there... then it is fine. But, the arbitration process cannot be allowed to be handled like this. This is why the arbitration is getting a bad name."

Emphasising the need to prevent the mismanagement of public funds, the bench stated, "The public money cannot be allowed to go waste like this."

The case pertains to the South Eastern Railway's challenge against the arbitral award favouring Kolkata-based firm Rashmi Metaliks Limited in a contractual dispute.

Despite the Supreme Court's initial reluctance to proceed, it scheduled the hearing for Thursday and directed senior advocate Abhishek Singhvi, representing the private firm, to obtain instructions.

Previously, the Calcutta High Court had granted an "unconditional stay" on the enforcement of the arbitration award, citing "glaring irregularities."

Referring to the observations made by the high court, the Chief Justice stated, "Look at what the high court has observed. We are willing to set aside the order and have a fresh arbitration. We will appoint an arbitrator for this one."

The Supreme Court strongly criticised an arbitral award instructing the South Eastern Railway to pay Rs 13.01 billion to a private firm, asserting that such misuse of public funds cannot be tolerated. The bench, led by Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra, expressed initial dissatisfaction with the sole arbitrator's decision, stating, Less said the better. As judges, we also know a lot of things. Expressing discontent with the arbitral award, the Chief Justice remarked, I am not happy with the arbitral award. Let the case go before a dispassionate arbitrator and let this be heard again. If Railways lose there... then it is fine. But, the arbitration process cannot be allowed to be handled like this. This is why the arbitration is getting a bad name. Emphasising the need to prevent the mismanagement of public funds, the bench stated, The public money cannot be allowed to go waste like this. The case pertains to the South Eastern Railway's challenge against the arbitral award favouring Kolkata-based firm Rashmi Metaliks Limited in a contractual dispute. Despite the Supreme Court's initial reluctance to proceed, it scheduled the hearing for Thursday and directed senior advocate Abhishek Singhvi, representing the private firm, to obtain instructions. Previously, the Calcutta High Court had granted an unconditional stay on the enforcement of the arbitration award, citing glaring irregularities. Referring to the observations made by the high court, the Chief Justice stated, Look at what the high court has observed. We are willing to set aside the order and have a fresh arbitration. We will appoint an arbitrator for this one.

Next Story
Products

TOTO India Launches Premium G & L Showers with Sleek Faucet Range

TOTO India has launched its G Shower and L Shower series, alongside an expanded range of GT, LH, and Pull-Out lavatory faucets. The collection blends advanced technology, refined aesthetics, and everyday comfort, staying true to TOTO’s philosophy of creating spaces that are both beautiful and functional. The G Shower series delivers the 3Rs of showering: Relaxing, Refreshing, and Revitalizing. Features include the Calming Shawl spray mode, Warm Spa technology, and multiple overhead and hand-shower options across eight finishes. The L Shower complements this with easy-to-use controls sui..

Next Story
Infrastructure Energy

Hero Future Energies Secures Funding for 120 MW Hybrid Project

Hero Future Energies (HFE), through its SPV Clean Renewable Energy Hybrid Three, has secured Rs 19.08 billion in funding from the State Bank of India (lead) and Canara Bank. The funds will be used to develop and construct HFE’s 120 MW renewable energy hybrid project at Kurnool, Andhra Pradesh. The project, contracted with SJVN, integrates wind, solar, and storage technologies to deliver reliable peak power. With a 21-year repayment period, the funding ensures timely execution and the commencement of commercial operations. The financial closure demonstrates continued lender confidence in..

Next Story
Infrastructure Energy

IOC GPS Renewables Raises Rs 8.36 billion Debt for Compressed Biogas Plants

IOC GPS Renewables Private Limited (IGRPL), a joint venture between IndianOil Corporation  and GPS Renewables, has raised Rs 8.36 billion (approx. US$ 95 million) in debt financing from Indian Bank to execute nine Compressed Biogas (CBG) projects across India.   The funding is the largest single-bank debt raise in the CBG sector and the first fully non-recourse financing in India for these projects. The plants—four in Haryana, three in Uttar Pradesh, one each in Chhattisgarh and Andhra Pradesh—will each produce 15 tonnes of CBG per day using paddy straw as feedstock. All nin..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?