| Content Provider | Supreme Court of India |
|---|---|
| e-ISSN | 30484839 |
| Language | English |
| Access Restriction | NDLI |
| Subject Keyword | Arbitration And Conciliation Act 1996 |
| Content Type | Text |
| Resource Type | Law Judgement |
| Jurisdiction | India |
| Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 |
| Case Type | Appeal |
| Court | Supreme Court of India |
| Disposal Nature | Appeal Allowed |
| Headnote | Arbitration And Conciliation Act, 1996 : ss. 34, 37 – Arbitral award – Setting aside of – Parties entered into two agreements, dealership agreement and lease agreement having distinct provisions for reference of the dispute to the arbitrator – Termination of the dealership agreement by the appellant – Appointment of an arbitrator in terms of the agreement – Arbitrator passed an award holding that the termination of the dealership was valid, and increased the monthly lease rent and reduced the period of the lease – Challenge to, by the appellant and the respondent – High Court partly allowed the respondent’s appeal and dismissed the appellant’s appeal holding that there was no scope for the district court to interfere with the award – On appeal, held: An arbitral tribunal being a creature of contract, is bound to act in terms of the contract under which it is constituted – An award can be said to be unquestionably illegal where the arbitral tribunal has failed to act in terms of the specificities of the contract – An arbitral tribunal is entitled to interpret the terms and conditions of a contract, while adjudicating a dispute - An error in interpretation of a contract in a case where there is valid and lawful submission of arbitral disputes to an arbitral tribunal is an error within jurisdiction while adjudicating a dispute – Court does not sit in appeal over the award made by an arbitral tribunal – Court does not ordinarily interfere with the interpretation made by the arbitral tribunal of a contractual provision, unless such interpretation is patently unreasonable or perverse – Impugned award insofar as it pertains to lease rent and lease period is patently beyond the scope of the competence of the arbitrator appointed in terms of the dealership agreement – An arbitral tribunal, or for that matter, the Court cannot alter the terms and conditions of a valid contract executed between the parties with their eyes open – Judgment of the High Court set aside, as also of the District Court insofar as the same pertains to lease rent and lease period. |
| Judge | Hon'ble Ms. Justice Indira Banerjee |
| Neutral Citation | 2022 INSC 130 |
| Petitioner | Indian Oil Corporation Ltd. Through Its Senior Manager |
| Respondent | M/s Shree Ganesh Petroleum Rajgurunagar Through Its Proprietor Mr. Laxman Dagdu Thite |
| SCR | [2022] 16 S.C.R. 450 |
| Judgement Date | 2022-02-01 |
| Case Number | 837 |
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