ISSUE:
Whether the arbitral tribunal's interpretation of Clause 23 as involving a price increase in high-speed diesel (HSD) due to an Executive Order was a reasonable construction of the contract provisions, given that the contract appeared to envisage a fixed rate for the contractor?
Whether the arbitral tribunal's interpretation, while based on the principle of harmonious interpretation, was so implausible and contrary to the overall terms of the contract that it could be considered against Indian public policy, justifying the High Court's overturning of the arbitral award?
RULE:
The rule established in this case is that, while courts and tribunals should normally use a harmonic interpretation of contract words to determine the parties' intent, such interpretation must nevertheless be consistent with the contract's overall terms and conditions. An interpretation that is not plausible in the context of the contract may be rejected, particularly if it contradicts the contract's plain stipulations and is contrary to Indian public policy.