| Content Provider | Supreme Court of India |
|---|---|
| e-ISSN | 30484839 |
| Language | English |
| Access Restriction | NDLI |
| Subject Keyword | Constitution of India 1950 |
| Content Type | Text |
| Resource Type | Law Judgement |
| Jurisdiction | India |
| Case(s) Referred | Referred Case 0 |
| Case Type | Appeal |
| Court | Supreme Court of India |
| Disposal Nature | Appeal Allowed |
| Headnote | Constitution of India, 1950 – Arts.226 and 227 – Interference with arbitral process – Scope – Dispute arising out of a contract between appellant and respondent no.1 – Contract had an arbitration clause – Appellant appointed respondent no.2 as the sole arbitrator – Application of respondent no.1 u/s.16 of the Arbitration Act disputing jurisdiction of the sole arbitrator, rejected – Writ petition filed by respondent no.1 – Allowed by High Court – Whether arbitral process could be interfered u/Art.226/227, and under what circumstance – Held: Respondent No.1 chose to impugn the order passed by arbitrator through a petition u/Art.226/227 when in the usual course, the Arbitration Act provided for a mechanism of challenge u/s.34 – When a statutory forum is created by law for redressal of grievances, a writ petition should not be entertained ignoring the statutory dispensation – It is prudent for a Judge to not exercise discretion to allow judicial interference beyond the procedure established under the enactment – This power needs to be exercised in exceptional rarity, wherein one party is left remediless under the statute or a clear ‘bad faith’ shown by one of the parties – On facts, no exceptional circumstance mandating interference by High Court u/Arts. 226 and 227 – High Court should not have used its inherent power to interject the arbitral process at a stage when subsequent to the impugned order of sole arbitrator, a final award was rendered by him on merits, which is already challenged by Respondent No. 1 in a separate s.34 application, and which is pending – If Courts are allowed to interfere beyond ambit of the enactment, then efficiency of the process will be diminished – Impugned order of High Court set aside – Arbitration and Conciliation Act, 1996. Arbitration and Conciliation Act, 1996 – Framework of the Act – Non-obstante clause in s.5 of the Act – Interpretation and effect – Held: The Act is a code in itself – The non-obstante clause in s.5 of the Act is provided to uphold the intention of the legislature as provided in the Preamble to adopt UNCITRAL Model Law and Rules, to reduce excessive judicial interference which is not contemplated under the Act – The framework clearly portrays an intention to address most of the issues within the ambit of the Act itself, without there being scope for any extra statutory mechanism to provide just and fair solutions. |
| Judge | Honble Mr. Justice N.V. Ramana |
| Neutral Citation | 2021 INSC 9 |
| Petitioner | Bhaven Construction Through Authorised Signatory Premjibhai K. Shah |
| Respondent | Executive Engineer Sardar Sarovar Narmada Nigam Ltd.& Anr. |
| SCR | [2021] 1 S.C.R. 1 |
| Judgement Date | 2021-01-06 |
| Case Number | 14665 |
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