PALI HILLS BREWERIES PRIVATE LIMITED vs CARLSBERG INDIA PRIVATE LIMITED

Judgment text excerpt

$~J * IN THE HIGH COURT OF DELHI AT NEW DELHI Judgment reserved on:17.10.2025 Judgment pronounced on: 22.01.2026 + O.M.P. (COMM) 595/2020, I.A. 12441/2020, I.A. 12442/2020, I.A. 12443/2020, I.A. 1083/2024 PALI HILLS BREWERIES PRIVATE LIMITED .....Petitioner Through: Mr. Kirtiman Singh, Sr. Adv with Mr. Varun Rajawat, Adv., Mr Arjun Chopra, Adv. and Mr. Maulik Khurana, Adv. versus CARLSBERG INDIA PRIVATE LIMITED ....Respondent Through: Mr. Dr. Maurya Vijay Chandra Adv. and Mr. Manu Prabhakar, Adv. CORAM: HON'BLE MR. JUSTICE JASMEET SINGH JUDGMENT 1. This is a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (“1996 Act”) seeking to set aside the Arbitral Award dated 15.09.2020 passed in the matter of “Carlsberg India Pvt. Ltd. v. Pali Hills Breweries Pvt. Ltd.” wherein out of the 7 claims preferred by the respondent before the Arbitral Tribunal (“Tribunal”) Digitally Signed By:MAYANK Signing Date:22.01.2026 O.M.P. (COMM) 595/2020 Page 1 of 47 18:37:48 claim Nos. 1 being liquidated damages and 7 being interest were allowed, claim Nos. 2 and 3 were rejected and claim Nos. 4, 5 and 6 were not pressed. The Tribunal further rejected all 5 counter claims of the petitioner. 2. The challenge in the present petition is to the extent of award of claim No. 1 and rejection of counter claim Nos. 1, 3 and 4. FACTUAL BACKGROUND 3. The respondent (claimant before the Tribunal) is a manufacturer of beer and the petitioner (respondent before the Tribunal) owns a brewery in the State of Jharkhand. The parties entered into a Contract Brewing and Packaging Agreement (“Agreement”) dated 11.12.2015 (“effective date”). 4. As per clause No. 14.1 of the Agreement, the petitioner was to provide a Bank Guarantee (“BG”) of Rs. 3,00,00,000/- within 15 days of the effective