Nation

Kolkata: Upholding an arbitral award of Rs 28,17,71,054 against Steel Authority of India Limited (SAIL), the Calcutta High Court ruled that an employer’s right to recover a tax-credit shortfall does not automatically permit deduction of that amount from certified contractor payments.

The court also said that any such power must be clearly conferred by the contract and cannot be implied.

A division bench of Justices Arijit Banerjee and Rai Chattopadhyay dismissed two appeals filed by the company and affirmed the findings of an international arbitral tribunal seated under the ICC Rules. The tribunal had directed payment of Rs 23,98,07,285 and Rs 4,19,63,769 to SMS India Pvt. Ltd., along with simple interest at seven per cent per annum from August 24, 2020.

The dispute arose from t

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