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Indian Laws - Highlights / Catch Notes

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SC overturned Division Bench's interference with arbitral award ...


Supreme Court Restores Arbitral Award in NHAI Contract Dispute, Upholds Tribunal's Interpretation of Clause 51 Under Section 34

January 30, 2025

Case Laws     Indian Laws     SC

SC overturned Division Bench's interference with arbitral award concerning contract interpretation between NHAI and contractor regarding geogrid quantities. Court held that Arbitral Tribunal's interpretation of Clause 51 was reasonable, finding no variation in work scope but merely difference between estimated and actual quantities required. SC emphasized limited scope of judicial intervention under Sections 34 and 37 of Arbitration Act, noting appellate jurisdiction is particularly circumscribed when reviewing orders upholding arbitral awards. Court restored original arbitral award, reinforcing principle that frequent interference with arbitration decisions undermines Act's purpose and courts must show great restraint, especially when awards are substantially upheld under Section 34.

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