NDLI: Konkan Railway Corporation Limited Vs. Chenab Bridge Project Undertaking

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1996 – ss. 34 and 37 Arbitration and Conciliation Act
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 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Issue for consideration : In the instant appeal, the legality of the orderpassed by the Division Bench of the High Court in an appeal u/s. 37 of theArbitration and Conciliation Act, 1996 by which the concurrent fi ndings of thearbitral tribunal and that of the Single Judge of the High Court u/s. 34 of the Actrejecting all claims were set aside and certain claims were allowed, is challenged.Arbitration and Conciliation Act, 1996 – ss. 34 and 37 – Arbitralaward – Concurrent interpretations of the contractual clause pertainingto the disputes, by the arbitral tribunal and the Single Judge of the HighCourt u/s. 34 – Interference with, by the Division Bench in an appeal u/s.37 – Justifi cation:Held : Principle of interpretation of contracts adopted by the DivisionBench of the High Court that when two constructions are possible, then courtsmust prefer the one which gives eff ect and voice to all clauses, does not haveabsolute application – Said interpretation is subject to the jurisdiction whicha court is called upon to exercise – While exercising jurisdiction u/s. 37, theCourt is concerned about the jurisdiction that the s. 34 Court exercised whileconsidering the challenge to the Arbitral Award – Jurisdiction u/s. 34 is exercisedonly to see if the arbitral tribunal’s view is perverse or manifestly arbitrary –Reinterpretation of the contract on an alternative view does not arise – DivisionBench exercising jurisdiction u/s. 37 cannot reverse an Award, much less thedecision of a Single Judge – On facts, the Division Bench of the High Courterred in re-interpreting a contractual clause while exercising jurisdiction u/s. 37 and setting aside the concurrent fi ndings of the arbitral tribunal and the SingleJudge of the High Court – Award of the arbitral tribunal and the decision of theSingle Judge of the High Court u/s. 34 cannot be termed as perverse or patentlyillegal – Decision of the arbitral tribunal is a plausible view, and the SingleJudge refrained from interfering with it u/s. 34 – Division Bench should nothave interfered with these orders – Thus, the judgment of the Division Benchof the High Court is set aside and that of the Single Judge is restored. [Paras20, 22, 24 and 25]Arbitration and Conciliation Act, 1996 – ss. 34 and 37 – Scope ofjurisdiction under :Held : Jurisdiction of the court u/s. 37 is akin to the jurisdiction of thecourt u/s. 34 – Scope of interference by a court in an appeal u/s. 37, in examiningan order, setting aside or refusing to set aside an award, is restricted and subjectto the same grounds as the challenge u/s. 34 – Thus, the scope of jurisdictionu/s. 34 and s.37 is not akin to normal appellate jurisdiction – Courts ought notto interfere with the arbitral award in a casual and cavalier manner – Merepossibility of an alternative view on facts or interpretation of the contract doesnot entitle courts to reverse the findings of the arbitral tribunal. [Paras 14 and 15]
Judge	Hon'ble Mr. Justice Pamidighantam Sri Narasimha
Neutral Citation	2023 INSC 742
Petitioner	Konkan Railway Corporation Limited
Respondent	Chenab Bridge Project Undertaking
SCR	[2023] 11 S.C.R. 215
Judgement Date	2023-08-17
Case Number	2903

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