2023 (4) TMI 758 - SC - Indian Laws

Seeking to vacate the status quo granted by the tribunal - seeking further to vacate the rights of the SLP petitioner with respect to the disputed project - HELD THAT - In the present case at hand, the reliefs sought by the applicant through the present applications are issues that are already pending adjudication before the Arbitral Tribunal, and no award has been passed regarding the same as of now. The provisions of the Arbitration and Conciliation Act,1996, as well as a catena of judicial pronouncements of this Court have time and again stated that the courts normally ought not interfere with arbitral proceedings, especially till the time an award is not passed. This practice of filing applications in disposed of SLPs in order to side-step the arbitration process should be discouraged, and such applications must not be entertained by this Court - Application allowed.

Summary

Issues involved:
The issues involved in the judgment are related to the interference in arbitral proceedings, seeking to vacate status quo granted by the tribunal, and the rights of the Special Leave Petition (SLP) petitioner with respect to the disputed project.

Interference in Arbitral Proceedings:
The Supreme Court noted that the reliefs sought by the applicant through the present applications are already pending adjudication before the Arbitral Tribunal, and no award has been passed regarding the same. Referring to the Arbitration and Conciliation Act, 1996, and previous judicial pronouncements, the Court emphasized that courts should generally refrain from interfering with arbitral proceedings until an award is issued.

Vacating Status Quo:
The applicant, after a significant time lapse, sought to vacate the status quo granted by the tribunal and further challenged the rights of the SLP petitioner concerning the disputed project. The Court observed that the applicant did not object to the maintenance of status quo during the arbitration proceedings, and filing applications in disposed SLPs to bypass the arbitration process should be discouraged.

Decision and Directions:
In light of the above discussion, the Supreme Court dismissed the Miscellaneous Application and pending Interlocutory Applications (IAs). The parties were directed to raise all issues on merits before the Arbitral Tribunal, which will adjudicate them in accordance with the law. Additionally, the parties were instructed to appear before the Tribunal and present a copy of the Court's order for the resumption of arbitration proceedings. The Court ordered the maintenance of status quo as directed by the Arbitral Tribunal until the matter is disposed of by the Tribunal.