SEAMEC Ltd (“Appellant”) was awarded a work order by Oil India Limited (“Respondent”) for well drilling and other auxiliary operations. During the term of the contract, there was an increase in the price of High-Speed Diesel (“HSD”), an essential material for carrying out the drilling operations. The Appellant raised a claim that an increase in the price of HSD, an essential component for carrying out the contract triggered the “change in law” clause under the contract (i.e., Clause 23). Clause 23, which provided for ‘Subsequently Enacted Laws provided that any additional or reduction in cost to the contractor which was a result of change in enactment of any law subsequent to the bid opening would be reimbursed to the contractor.
Important decisions on Arbitration in 2020- May 18 2020
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