S V Samudram vs State of Karnataka 2024 INSC 17 :: [2024] 1 S.C.R. 281 – S 34 Arbitration Act

Arbitration and Conciliation Act, 1996 ; Section 34 – Any court under Section 34 would have no jurisdiction to modify the arbitral award – The court cannot correct errors of the arbitrators. It can only quash the award leaving the parties free to begin the arbitration again if it is desired- Referred to Larsen Air Conditioning and Refrigration Company v. Union of India  2023 SCC On Line 982, Dakshin Haryana Bijli Vitran Nigam Limited v. Navigant Technologies Private Limited (2021) 7 SCC 657 and National Highways Authority of India v. M. Hakeen 2021) 9 SCC 1 (Para 14)

Arbitration and Conciliation Act, 1996 ; Section 34 – Arbitral proceedings are per se not comparable to judicial proceedings before the Court   The Arbitrator’s view, generally is considered to be binding upon the parties unless it is set aside on certain specified grounds. In the very same decision taking note of the opinion as is in “Russel on Arbitration”, reiterated the need for the Court to look at the substance of the findings, rather than its form, stood reiterated and the need for adopting an approach of reading the award in a fair and just manner, and not in what is termed as “an unduly literal way”. All that is required is as to whether the reasons borne out are intelligible or not for adequacy of reasons cannot stand in the way of making the award to be intelligibly readable – if the view taken by the Arbitrator is a plausible view, no interference on the specified grounds is warranted – an award passed by a technical expert is not meant to be scrutinised in the same manner as is the one prepared by a legally trained mind – Referred to Delhi Airport Metro Express Private Limited v. Delhi Metro Rail Corporation Limited  (2022) 1 SCC 131 , Konkan Railway Corpn. Ltd. v. Chenab Bridge Project (2023) 9 SCC 85 and Dyna Technologies Private Limited v. Crompton Greaves Limited (2019) 20 SCC 1. (Para 17-19)

Arbitration and Conciliation Act, 1996 ; Section 31- Award of interest -Referred to Hyder Consulting (UK) Ltd. v. State of Orissa (2015) 2 SCC 189. (Para 45)

Leave a Comment

Your email address will not be published. Required fields are marked *