RR Constructions and Infrastructure India Pvt. Ltd. v. Gayatri Ventures

Civil Appeal · 2026 INSC 514Decided 20 May 2026
C.A. No.-008023-008023 - 2026
Justice Sanjay Kumar · Justice K. Vinod Chandran

Background

RR Constructions bid for a state government irrigation tender (Chhattisgarh Water Resources Department) but was disqualified because it submitted its Earnest Money Deposit (EMD) as a Fixed Deposit (FD) instead of a Demand Draft (DD), which the Chhattisgarh High Court held was mandatory for out-of-state bidders. As a result, the tender was awarded to the next-lowest qualifying bidder, Gayatri Ventures, whose financial bid (Rs. 149 crore) was significantly higher than RR Constructions' bid (Rs. 120 crore). RR Constructions appealed to the Supreme Court, arguing the tender conditions made a Demand Draft optional, not mandatory, and that a Fixed Deposit was an equally valid form of "Approved Interest Bearing Security" under the tender clauses.

Decision Breakdown

The Supreme Court examined the actual wording of the tender's EMD clauses and found that the words "may submit" in Clauses 2.13(b) and 2.15 made submission of a Demand Draft optional rather than mandatory for out-of-state bidders, and that a Fixed Deposit qualified as an "Approved Interest Bearing Security" under Clause 2.13(a)(iv). It rejected the State's argument that "approved" required a specific government approval, holding the word simply described the interest-bearing nature of the security. The Court therefore set aside the High Court's judgment and restored the appellant's qualification at the technical-bid (Envelope A) stage, while expressly declining to disturb a separate, later disqualification of the appellant at the Envelope B stage, leaving that issue open for the appellant to pursue with the tendering authority.

Lesson Learnt

In tender disputes, courts will interpret eligibility conditions strictly by their actual wording: permissive language like "may" cannot be treated as creating a mandatory requirement, and bidders should not be disqualified on conditions the tender document itself does not impose as compulsory.

Arbitration & Commercial LawSupreme Court of India

Modern Asset v. KNK Constructions Private Limited

The Supreme Court held that an arbitration clause survives termination of the underlying contract (the "doctrine of separability") and that, at the Section 11 reference stage, courts only check for the prima facie existence of an arbitration agreement: deeper questions about the effect of the resolution plan are for the arbitrator. It confirmed that while the IBC's "clean slate" principle extinguishes creditors' claims against the insolvent company once a resolution plan is approved, it does not extinguish the claims the company itself (through its SRA) may have against its own debtors, since the Resolution Professional had not raised a counter-claim on KNK's behalf during the insolvency process. However, noting the inequity of letting KNK recover fresh dues on the same contract while Modern Asset's own claim had been wiped out to 0.72 %, and following its own recent precedent in Ujaas Energy, the Court modified the High Court's order: Modern Asset may raise its extinguished claim in the arbitration solely as a set-off against any amount it is found to owe KNK, but cannot use it to claim any fresh recovery.

Decided 8 Oct 2026Read case
Arbitration & Commercial LawDelhi High Court

S And P Infrastructure Developers (Pvt) Ltd vs. National Highways Authority of India

The Court held that the Joint Registrar's order overlooked an earlier ruling of this Court (M/s URC Construction (P) Ltd. v. Airports Authority of India) establishing that an instrument must be stamped at or before execution, with any delay attracting penalty, not just a top-up payment. Since the Joint Registrar's order was not in line with the Indian Stamp Act, 1899, the Court set it aside. The decree holder's counsel then sought to withdraw the petition with liberty to refile once the stamp duty issue was properly resolved, which the Court granted.

Decided 8 Oct 2026Read case
Arbitration & Commercial LawSupreme Court of India

Shubham Equipment Private Limited & Anr. v. Rothwell Water Company Limited & Ors.

The Supreme Court held that the Licence Agreement, the JVA, and the MoU each covered different subject matter (technology licensing, the joint venture company, and logistics services respectively), so the JVA and MoU's own arbitration clauses, providing for arbitration in Mumbai under Indian law, governed the disputes arising under them, not the Licence Agreement's Korea clause. Both agreements also contained "entire agreement" clauses showing they were meant to stand independently. The Court restricted itself to the limited inquiry required at the reference stage under Section 11(6-A), whether an arbitration agreement prima facie exists, and left deeper questions, including whether a non-signatory subsidiary (RBIPL) could be bound, to the arbitrator. It allowed the petitions and appointed a former Chief Justice of the Bombay High Court as the sole arbitrator.

Decided 8 Oct 2026Read case
Arbitration & Commercial LawDelhi High Court

M/S Redcliffe Lifetech Pvt Ltd vs. Connect and Heal Primary Care Pvt. Ltd.

Since the dispute was resolved, the petitioner's counsel sought leave to withdraw the petition rather than continue with it. The Court granted leave and dismissed the petition as withdrawn, along with any pending applications.

Decided 7 Oct 2026Read case
Arbitration & Commercial LawDelhi High Court

M/S Redcliffe Lifetech Pvt. Ltd. vs. Lifespan Wellness Private Limited

The Court reiterated that at the stage of appointing an arbitrator under Section 11, it need only check whether an arbitration agreement exists on its face, not decide the merits of the dispute. Finding the arbitration clause undisputed, the Court appointed a named advocate as sole arbitrator under the aegis of the Delhi International Arbitration Centre (DIAC), leaving all other objections (including arbitrability and jurisdiction) to be decided by the arbitrator.

Decided 7 Oct 2026Read case
Arbitration & Commercial LawDelhi High Court

M/S. Keshari Multi Functional Complex Pvt Ltd vs. Rail Land Development Authority

Because the awarded amount was already deposited pursuant to the earlier stay order, the Court held nothing further survived for consideration in the present enforcement petition. It disposed of the petition, giving the decree holder liberty to refile later after paying the proper stamp duty (and any penalty) under the Indian Stamp Act, 1899.

Decided 7 Oct 2026Read case