Topic

commitment charges

2 articlesLatest May 2026
Section 34 Arbitration Act | Future Commitment Charges Invalid Beyond 6 Months Where Contract Allows Exit With Notice : Calcutta HC
Case Law Analysis
|Calcutta High Court

Section 34 Arbitration Act | Future Commitment Charges Invalid Beyond 6 Months Where Contract Allows Exit With Notice : Calcutta HC

The Calcutta High Court has set aside ₹127.12 crores in future commitment charges awarded by the arbitral tribunal, ruling that contractual exit rights with notice override lock-in provisions when no actual production occurs. Interest on mobilisation advances must revert to the contractually agreed 14.5%, reinforcing that commercial parties cannot be penalised for lawful termination under clear terms.