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by sayum
07 February 2026 8:36 AM
“An admission is the best evidence that an opposing party can rely upon, and it shifts the burden entirely”, Delivering a judgment that sharply reinforces the probative power of admissions made during cross-examination, the Bombay High Court has ruled that statements made by municipal officers in cross-examination before the arbitral tribunal were sufficient to uphold the tribunal’s award.
Justice Sandeep V. Marne, presiding over Commercial Arbitration Petition No. 444 of 2024, emphasized in his 6 February 2026 decision that when responsible officials admit crucial facts under oath, such testimony becomes “the best form of evidence” and relieves the opposing party from the burden of proving the negative.
The Court was hearing a challenge filed under Section 34 of the Arbitration and Conciliation Act, 1996, by the Solapur Municipal Corporation, seeking to set aside an arbitral award of ₹32.15 crores made in favour of a contractor joint venture. A pivotal part of the challenge hinged on the Corporation’s insistence that the contractor had delayed project execution. However, during the arbitral proceedings, multiple key municipal officials admitted under cross-examination that the delay was caused by inaction on the part of the Corporation, including unavailability of land, delayed permissions, and late approvals.
“Admissions are not merely statements—they are decisive proof when made by responsible witnesses”
Justice Marne, while discussing the evidentiary weight of these admissions, observed:
“Admissions made by the Municipal Commissioner and other senior officials in their cross-examination cannot be brushed aside. These are not stray comments but categorical acknowledgments that land acquisition was pending, that approvals were delayed, and that certain tasks could not begin without the Corporation's action.”
In unequivocal terms, the Court held that such admissions by the Corporation’s own witnesses “entirely undermined” the contention that the contractor was in breach of timelines. The judgment dismissed the argument that the contractor bore the burden of proving its own non-default, holding instead that once the Corporation’s officials had themselves accepted blame, no further proof was necessary.
The Court relied on settled principles of evidence law, stating:
“An admission is substantive evidence. It is binding unless proved to be untrue. In arbitration, where flexibility in procedure is allowed, such statements carry even greater evidentiary value.”
“Proof of a negative is not required when the opposite party admits the positive”
The Court also made a significant legal observation by holding that the contractor was not required to adduce separate documentary proof to show that it did not cause delay:
“To ask a party to prove the absence of wrongdoing when the other side’s witnesses themselves have admitted fault is a misdirection in law.”
The Court further held that admissions of key facts by party representatives during cross-examination satisfy the burden of proof and that tribunals are fully entitled to base findings on such admissions.
“A Party Cannot Be Heard to Deny Its Own Witnesses”
Justice Marne’s ruling sends a strong message to government authorities and public bodies involved in arbitral disputes: once key officials admit liability or failure, the authority cannot then repudiate its own case by challenging the evidentiary process. In the Solapur case, officials admitted that the delay in bhoomi poojan, in land acquisition, and in obtaining environmental approvals had delayed the start of the ₹212 crore project.
Refusing to treat these admissions as trivial, the Court observed:
“These statements were not vague or speculative. They were precise, specific, and made by officers with direct knowledge. The arbitral tribunal rightly placed reliance on them.”
In doing so, the High Court upheld the arbitral award in its entirety, finding no perversity, patent illegality, or misconduct in the award-making process. The Court also dismissed the Corporation’s argument that the award was unsupported by evidence, holding that the admissions of municipal officials provided ample basis for the findings.
Arbitral Awards Based on Admissions Will Stand Firm
This ruling not only upholds the integrity of the arbitral process but also places crucial emphasis on the evidentiary finality of cross-examination admissions, especially when made by public officials in institutional matters. It reinforces that once admissions are made, parties cannot be allowed to retreat behind technicalities or unsupported pleadings.
The Court has thereby provided a valuable precedent for arbitration jurisprudence: when admissions are made under oath by responsible officers, those admissions are not to be doubted lightly, and they can form the sole basis of the tribunal’s conclusions.
Date of Decision: 6 February 2026