Surya Construction v. Steel Authority of India Ltd.

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Surya Construction v. Steel Authority of India Ltd., Appeal No. 127 of 2024 in Arbitration Petition No. 46 of 2017, High Court of Judicature at Bombay (OO), decided 9 April 2025 (Alok Aradhe, CJ & M. S. Karnik, J., judgment per Karnik, J.). Section 37 appeal against dismissal of Section 34 challenge to the Sole Arbitrator's award rejecting consignment-agency claims: less supply Rs.80,88,015 (80% of estimated 10,800 MT/year over 33 months) and alternative unrecovered costs Rs.99,04,779; total noticed claim Rs.1,27,35,362.42; contract at Silvassa concluded 1 Aug 2011. Tender clauses 3.5 and 5.12: quantities 'only indicative', 'No. guarantee whatsoever' of definite tonnage; no binding minimum-supply obligation; weaker bargaining power/public-policy plea rejected; appellant free to store third-party cargo, no rate embargo. Precedents: Urban Infrastructure Real Estate Fund v. Neelkanth Realty (COMA No. 37 of 2020, 2 Apr 2025) relied on for Section 34/37 scope; MTNL v. Canara Bank (2020) 12 SCC 767 and UOI v. D.N. Revri ((1976) SCC 147) distinguished; Ssangyong Engineering; ONGC v. Western Geco ((2014) 9 SCC 263); Jute Corp. of India (1991 Supp 2 SCC 744); State of Chhattisgarh v. Sal Udyog ((2020) 21 SCC OnLine 1027); ONGC v. Saw Pipes ((2003) 5 SCC 705) referred. Outcome: appeal dismissed, no costs.