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Swan Gold Mining Ltd. v. Hindustan Copper Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 9048 of 2014)Decided 22 Sept 2014
Civil Appeal No. 9048 of 2014
Justice M.Y. Eqbal · Justice Pinaki Chandra Ghose

Background

A mining contractor sought reimbursement of excise duty and other taxes from Hindustan Copper, arguing its bid excluded those amounts. An arbitrator rejected the claim because the accepted work order made the contractor responsible for taxes. After the High Court refused to set aside the award, the contractor appealed.

Decision Breakdown

The Supreme Court dismissed the appeal and left the award intact. The tender and work order placed tax liability on the successful bidder, and the contractor's representative had signed every page of the work order. No patent illegality or applicable public-policy ground justified setting aside the award. A court reviewing an arbitral award could not simply re-evaluate the evidence and substitute its preferred interpretation of the contract.

Lesson Learnt

Read the final work order carefully, including tax clauses, before signing and performing it. A losing party cannot reopen an arbitration merely because it prefers a different reading of terms it accepted.

Official source (sci.gov.in)View Judgment (PDF)

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