Arbitrator Cannot Grant Relief Contrary to Contract Terms, Compensation for Delay Set Aside: Rajasthan High Court

In a significant decision, the court has addressed issues regarding arbitration, compensation claims, and contractual obligations under the Arbitration and Conciliation Act, 1996, in the case involving the Government of Rajasthan and M/s XYZ Construction Ltd. The case sheds light on how compensation for damages due to delays in infrastructure projects is dealt with in light of the terms of a BOT (Build-Operate-Transfer) agreement. Background of the Case The dispute…