The Appellate Court exceeded its jurisdiction u/s 37 of the ...

Supreme Court Reinstates Arbitral Award, Limits Appellate Court's Power to Overturn Decisions Under Arbitration Act.

September 30, 2024

Case Laws     Indian Laws     SC

The Appellate Court exceeded its jurisdiction u/s 37 of the Arbitration and Conciliation Act, 1996, by setting aside an arbitral award that had already been confirmed u/s 34. The Supreme Court reiterated that courts should not interfere with arbitral awards lightly, and mere possibility of an alternative interpretation does not warrant reversal. The scope of intervention is confined to grounds specified u/s 34, and the appellate power u/s 37 is limited to examining if the court u/s 34 acted within its limits. The Appellate Court cannot reappraise evidence on merits as an ordinary court of appeal. Since the arbitral award was reasonable, based on evidence, and not against public policy or law, it was rightly upheld u/s 34. The Appellate Court erred by setting it aside without finding any illegality u/s 34. Merely having a better view is no ground for interference. The Supreme Court set aside the Appellate Court's judgment and restored the arbitral award.

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