Counter-claim of a party cannot be rejected merely because claims were not notified prior to initiating arbitration

National Highway Authority of India Vs Transstroy (India) Limited (Supreme Court)

The counter-claim of a party cannot be rejected for the simple reason that the claims were not notified prior to initiating arbitration.

Facts of the Case:

The National Highway Authority of India and Transstroy (India) Limited entered into an Engineering Procurement and Construction Agreement on November 13, 2014 for the upgrade of the Karaikudi-Ramanathapuram Section of National Highway No. 210 in Tamil Nadu, including 500m on SH-35 Madurai Road.

Due to NHAI’s belief that the Respondent had broken specified contract requirements, on September 29, 2015, it gave the Respondent 60 days to correct any defaults. This was done in accordance with clause 23.1.1 of the contract.

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