Court dismisses SJVN Ltd's plea to set aside the arbitral award, emphasizing limited judicial intervention in arbitral matters.
In a significant judgment, the Delhi High Court dismissed a petition by SJVN Ltd challenging an arbitral award favoring Patel Gammon Joint Venture. The case, involving the interpretation of arbitration clauses and contract terms under the Arbitration and Conciliation Act, 1996, revolved around a dispute related to haulage payments in a hydroelectric power project in Himachal Pradesh.
Justice Jasmeet Singh emphasized the limited scope of judicial intervention in arbitral awards, reiterating that courts do not sit in appeal over such awards. The court highlighted that an award can only be set aside on grounds of patent illegality or contravention of public policy, neither of which were established in this case.
The dispute arose from a contract awarded to Patel Gammon Joint Venture for civil construction works at SJVN's hydroelectric power project. The contention centered on whether haulage of excavated materials beyond 1 km should be compensated, a claim initially rejected by SJVN but upheld by the arbitral tribunal.
The court affirmed the tribunal's interpretation of contract clauses, stating that the tribunal's view was reasonable and within the scope of the contract. Additionally, the court noted that the arbitration proceedings' venue, Delhi, did not confer supervisory jurisdiction, as the contract's particular conditions designated Himachal Pradesh courts for jurisdiction over contractual matters.
Despite the court's acknowledgment of lacking territorial jurisdiction, it chose to address the case's merits, given the prolonged pendency since 2017. This decision underscores the judiciary's commitment to the arbitration process's efficiency and finality.
Bottom Line:
Arbitration and Conciliation Act, 1996 - Jurisdiction and interpretation of contract terms in arbitration - Courts cannot reassess factual findings of an arbitral tribunal unless the award is patently illegal or contravenes public policy.
Statutory provision(s): Arbitration and Conciliation Act, 1996, Sections 20, 34, 28(3).
SJVN Ltd v. Patel Gammon Joint Venture, (Delhi) : Law Finder Doc Id # 2833630
