Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Scope of interference 37 Arbitral award ss. 34 Arbitration and Conciliation Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Arbitration and Conciliation Act, 1996: ss. 34, 37 – Arbitralaward – Scope of interference – Held: Arbitral award is not anordinary adjudicatory order so as to be lightly interfered with bythe Courts u/ss. 34 or 37 as if dealing with an appeal or revisionagainst a decision of any subordinate Court – An award could besaid to be suffering from “patent illegality” only if it is an illegalityapparent on the face of the award and not to be searched out byway of re-appreciation of evidence – Possibility of interference wouldarise only if the construction of the arbitrator is such which couldnot be made by any fair-minded and reasonable person – Narrowscope of “patent illegality” cannot be breached by mere use ofdifferent expressions which nevertheless refer only to “error” andnot to “patent illegality” – If an arbitrator construes the term ofcontract in a reasonable manner, the award cannot be set asidewith reference to the deduction drawn from construction – Restraintis required to be shown while examining the validity of arbitral awardby the Courts, else interference with the award after reassessingthe factual aspects would be defeating the object of the Act – Onfacts, the appellants constructed a power plant for the State undera power purchase agreement-PPA, however, the State failed to payfor the power generated by the plant – Matter referred to thearbitrator, wherein the appellants awarded a sum of Rs. 292.22crore along with an interest of 15% p.a. from the date of the awardtill the date of payment, however, the High Court reduced the interestrate awarded to 10% p.a.– High Court misdirected itself on themajor issues concerning the merits of the award – Nothing of apatent illegality apparent on the face of the award pointed out – Asthe prevailing interest rates at the time were in the range of 13% to14% p.a., the arbitrator acted within his jurisdiction in awardingthe interest rate of 15% p.a. post award and there was nojustification to reduce the same to 10% p.a. – There had been no such flaw in the judgment and order passed by the CommercialCourt which called for interference by the High Court on theparameters and within the periphery of ss. 34/37 – Part of theimpugned judgment and order passed by the High Court, whichmodifies the award and the order of the Commercial Court is setaside and the award is restored in its entirety. |
Judge | Hon'ble Mr. Justice Dinesh Maheshwari |
Neutral Citation | 2023 INSC 514 |
Petitioner | Reliance Infrastructure Ltd. |
Respondent | State Of Goa |
SCR | [2023] 8 S.C.R. 379 |
Judgement Date | 2023-05-10 |
Case Number | 3615 |
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