Arbitration and Conciliation Act, 1996 — Section 37 — Contractual clauses — Enforceability of Clause 49.5 of the General Conditions of Contract (GCC) — The Court upheld the validity and enforceability of Clause 49.5 of the GCC, which states that in the event of any failure or delay by the employer (respondent) in fulfilling its obligations under the contract, the contractor (appellant) is not entitled to claim damages or compensation — Instead, the contractor is only entitled to an extension of time to complete the work — The Court found that the appellant had repeatedly invoked Clause 49.5 to seek extensions of time and had accepted the terms of the clause by submitting undertakings not to make any claims other than escalation for the delays caused by the respondent — Therefore, the appellant was estopped from challenging the validity of Clause 49.5.
2025 INSC 138 SUPREME COURT OF INDIA DIVISION BENCH M/S. C & C CONSTRUCTIONS LTD. Vs. IRCON INTERNATIONAL LTD. ( Before : Abhay S. Oka and Ujjal Bhuyan, JJ. )…