Arbitration Can Be Set Aside Only if Award is Against Public Policy of India: SC


An arbitration award might be put aside provided that the award is in opposition to the general public coverage of India, the Supreme Court has mentioned. A bench of Justices MR Shah and BV Nagarathna mentioned the award might be put aside underneath the Arbitration Act, whether it is discovered to be patent to the elemental coverage of Indian Law, curiosity of nation, justice or morality or whether it is illegally.

The high court docket was listening to an attraction filed by Haryana Tourism Ltd in opposition to an order of the Punjab and Haryana High Court which put aside a 2005 award handed by the arbitrator in addition to the order handed by the Additional District Judge, Chandigarh. Haryana Tourism Limited (HTL) had invited tenders/quotations for the availability of Aerated Cold Drinks at its Tourist Complexes and the tender submitted by Kandhari Beverages was accepted.

HTL later terminated the contract after dispute arose between the events and the matter was referred to the only arbitrator. The arbitrator directed Kandhari Beverages to pay Rs 9.5 lakh whereas the counter declare lodged by it claiming Rs 13.92 lakh was dismissed by the arbitrator.

Kandhari Beverages thereafter filed objection petition Additional District Judge, Chandigarh underneath Section 34 of the Arbitration Act in opposition to the award handed by the arbitrator. The Additional District Judge dismissed the attraction/objection petition after which it filed additional attraction earlier than the excessive court docket underneath Section 37 of the Arbitration Act.

The excessive court docket allowed the mentioned attraction by coming into into the deserves of the declare and has quashed and put aside the award handed by the arbitrator in addition to the order handed by Additional District Judge, Chandigarh. The apex court docket mentioned the excessive court docket has exercised the jurisdiction not vested in it underneath Section 37 of the Arbitration Act.

In view of the above and for the explanations said above, the current attraction succeeds. The impugned judgment and order handed by the High Court is hereby quashed and put aside. The award handed by the arbitrator and the order handed by the Additional District Judge underneath Section 34 of the Arbitration Act overruling the objections are restored hereby, the bench mentioned in January 11 order. An award might be put aside provided that the award is in opposition to the general public coverage of India, it mentioned.

Read all of the Latest News, Breaking News and Coronavirus News right here.



Source hyperlink

Leave a Reply

Your email address will not be published.