Bharat Heavy Electrical Limited & Anr vs M/S Koneru Constructions

ik-29967433 Delhi High Court 26 November 2025 • 37 min read

Judges (1)

Sachin Datta Delivered

Counsel (11)

Dharmesh Misra Counsel Respondent Dibya Nishant Counsel Petitioner Farheen Pensale Counsel Petitioner Khushbu Dwivedi Counsel Petitioner Monika Arora Counsel Respondent Pallav Kumar Counsel Petitioner Prateek Gupta Counsel Respondent Radhika Kurduka Counsel Respondent Raghav Tiwari Counsel Respondent Sanjeev Anand Counsel Petitioner Subrodeep Saha Counsel Respondent

Parties (2)

Bharat Heavy Electrical Limited Petitioner Koneru Constructions Respondent

Case Significance

Bharat Heavy Electrical Limited & Anr vs M/S Koneru Constructions is a Delhi High Court decision dated November 26, 2025 (citation: ik-29967433). BHEL challenged an arbitral award under Section 34 of the Arbitration and Conciliation Act, specifically the award of escalation damages of Rs. 72,90,719 with 18% interest granted to the respondent contractor for civil works at a Power Grid substation in Tamil Nadu. The Court found the Arbitrator's method of computing damages — awarding 10% of the executed value on an ad-hoc basis — to be patently erroneous with no rational basis. The petition was allowed and the damages portion of the arbitr The case was heard by Justice Sachin Datta.

Summary

BHEL challenged an arbitral award under Section 34 of the Arbitration and Conciliation Act, specifically the award of escalation damages of Rs. 72,90,719 with 18% interest granted to the respondent contractor for civil works at a Power Grid substation in Tamil Nadu. The Court found the Arbitrator's method of computing damages — awarding 10% of the executed value on an ad-hoc basis — to be patently erroneous with no rational basis. The petition was allowed and the damages portion of the arbitral award was set aside.

What was the outcome of Bharat Heavy Electrical Limited & Anr vs M/S Koneru Constructions?

BHEL challenged an arbitral award under Section 34 of the Arbitration and Conciliation Act, specifically the award of escalation damages of Rs. 72,90,719 with 18% interest granted to the respondent co...

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (ik-29967433)