Delhi High Court Upholds Arbitral Award in BSNL-Vihaan Networks Dispute

The Delhi High Court dismissed BSNL’s appeal challenging an arbitral award of ₹43.52 crore granted to Vihaan Networks Ltd (VNL).

The dispute arose after BSNL issued an Advance Purchase Order (APO) for telecom work but later withdrew it.

VNL claimed compensation for partial work already completed. The arbitral tribunal awarded the amount under the principle of quantum meruit (payment for services rendered).

A Single Judge had upheld the award, and the Division Bench ruled that courts cannot interfere unless the award is legally unsustainable. The Court found the tribunal’s reasoning reasonable by relying on M.C.D. v. Ravi Kumar case.