SOUTH EAST ASIA MARINE ENGINEERING AND CONSTRUCTIONS LTD. (SEAMEC LIMITED) vs OIL INDIA LIMITED

The Supreme Court held that the interpretation of the 'change in law' clause under Clause 23 of the contract, as applied by the Arbitral Tribunal, was valid and should not have been set aside by the High Court under Section 37 of the Arbitration and Conciliation Act, 1996. The Court emphasized that the increase in the price of High-Speed Diesel (HSD) due to executive orders falls within the ambit of the clause, thus entitling the appellant to reimbursement. The Supreme Court reversed the High Court's decision, reinstating the arbitral award in favor of the appellant.