The Supreme Court set aside the Bombay high court order in favour of the helicopter company and asked it to pay cost of the litigation to the contracting firm, Associated Construction.
The construction was scheduled to be completed in four months, but it could not meet the deadline due to the fault of Pawanhans. Then there was disagreement over the bills. Pawanhans demanded a "no claim certificate" for release of payment. It was given "under duress" as the construction firm was in financial distress. The matter went to the arbitrator, who gave an award in favour of the contractor.
Then the government company moved the Bombay high court. Though the single judge bench stated that the delay was due to the fault of Pawanhans and the
