Arbitration : Supreme Court Explains Role of High Court in Interfering in Arbitral Matters

Arbitration : Supreme Court Explains Role of High Court in Interfering in Arbitral Matters

In the case of Deep Industries Ltd. vs ONGC Ltd., [2019] GCtR 6501 (SC), the Supreme Court took a view that Article 227 being a constitutional provision does not get impacted with the non obstante clause of Section 5 of the Arbitration and Conciliation Act, 1996 but the High Court dealing with the orders allowing or dismissing of the appeals under Section 37 of the A&C Act, 1996 would be extremely circumspect in interfering with the same, taking into account the statutory policy so that interference is restricted to orders that suffer patent lack of jurisdiction. 

The phrase used was "High Court would be extremely circumspect in interfering with the same" and in matters where Orders under challenge are those "patently lacking in inherent jurisdiction".

Most significant of all is the non-obstante clause contained in Section 5 of A&C Act, 1996 which states that notwithstanding anything contained in any other law, in matters that arise under Part I of the Arbitration Act, no judicial authority shall intervene except where so provided in this Part. Section 37 of A&C Act, 1996 grants a constricted right of first appeal against certain judgments and orders and no others. Further, the statutory mandate also provides for one bite at the cherry, and interdicts a second appeal being filed (See Section 37(2) of the Act).

Entering into the general thicket of disputes between the parties does not behove a court exercising jurisdiction under Article 227, where only jurisdictional errors can be corrected.

It was held that legislative policy qua the general revisional jurisdiction that is contained by the amendments made to Section 115 of Code of Civil Procedure, 1908 should also be kept in mind when High Courts dispose of petitions filed under under article 227. No revision lies if an alternative remedy of appeal is available. Further, even when a revision does lie, it lies only against a final disposal of the entire matter and not against interlocutory orders.

Scope of "Review" in Arbitration : HC Explains the Law

 

Scope of Review in Arbitration : HC Explains the Law

In one of the case, issue of review arose.

In M/s.Madhav Structural Engineering Ltd. v Maharashtra State Road Development) Corporation Limited [2013] GCtR 4353 (Bombay) it was held that "in view of the express bar provided under section 5 that notwithstanding contained any other law for the time being in force, matters which are governed by part I, no judicial authority shall intervene except where so provided in that part" and "the review is not provided in any of the provisions of Part I of the Arbitration and Conciliation Act, 1996".

Further, "the Arbitration and Conciliation Act is a self contained code and as the said Act does not provide any remedy of review, it is manifest that review could not be made." "Remedy of review is substantive remedy and would not be maintainable unless the statute/rules permits. If, the right of review is not provided and is allowed to be exercised, any order if passed would be ultra-virus and without jurisdiction."

 Written by 

Vishal

Delhi

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Arbitration and Conciliation Act, 1996 : Judgment Reserved on 21 June 2021 by HC in Arbitration Appeal

In an Arbitration Appeal, On 21 June 2021, High Court has Reserved the Judgment

One of the Hon'ble High Court in India has reserved the Judgment on 21 June 2021 in an arbitration appeal filed by a Public Sector Company against another Company. [Source : Guwahati Court Reporter (GCtR)]

It is relevant to note that Arbitration and Conciliation Act, 1996 was amended in the year 2015 and in one of the Judgment, Hon'ble Supreme Court has even held that "Section 12(1) [of the Arbitration and Conciliation Act, 1996], as substituted by the Arbitration and Conciliation (Amendment) Act, 2015 makes it clear that when a person is approached in connection with his possible appointment as an arbitrator, it is his duty to disclose in writing any circumstances which are likely to give rise to justifiable doubts as to his independence or impartiality." [Source : https://vishallegalghy.blogspot.com/2021/06/supreme-courts-5-important-points.html visited on 22 June 2021 at 11:40 a.m.]