Delhi High Court Sets Aside Arbitral Award Against Indian Oil Corporation Over “Acute Reasoning Deficit”

The Delhi High Court has set aside an arbitral award, holding that an award lacking intelligible reasoning is liable to be set aside under Section 34, as arbitral awards must satisfy the requirement of reasoned decisions under Section 31(3) of the Arbitration and Conciliation Act, 1996. A Bench of Justice Harish Vaidyanathan Shankar held that an arbitral award must disclose a clear reasoning process and cannot merely reproduce pleadings or record conclusions without analysis. The challenge was...

Party Cannot Bypass MSMED Act Mechanism To Seek Arbitrator Appointment: Delhi High Court

The Delhi High Court on 9 April 2026 held that once a party invokes the dispute resolution mechanism under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 and the matter is pending before the Micro and Small Enterprises Facilitation Council, it cannot bypass that process by approaching the Court under Section 11(6) of the Arbitration and Conciliation Act, 1996. A Bench of Justice Mini Pushkarna clarified that even where the Council delays in initiating arbitration,...

Uttarakhand High Court Dismisses Writ Pleas Against Arbitrator's Rejection Of Delayed NH -74 Compensation Claims

The Uttarakhand High Court has dismissed a batch of petitions filed by landowners challenging an arbitrator's rejection of their delayed claims for enhanced compensation under the National Highways Act, holding that such challenges cannot be entertained in writ jurisdiction when a statutory remedy is available under the arbitration law.It noted that a remedy is available under the Arbitration and Conciliation Act to challenge such orders. A single bench of Justice Rakesh Thapliyal noted that...

Busy Schedule, Travel Not 'Sufficient Cause': Karnataka High Court Refuses To Condone Delay In Arbitration Appeal

The Karnataka High Court has recently refused to condone a delay of 85 days in filing an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, holding that a busy schedule and travel do not constitute “sufficient cause." Holding that the appeal was barred by limitation and also devoid of merit, the court dismissed the appeal filed by L Vivekananda against Handy 101 Solutions and Service Pvt. Ltd. and its promoter Peter Pushparaj, thereby upholding the Commercial Court's order...

IOCL 'State' Status Analysis Misplaced In Contractual Dispute: Calcutta High Court Upholds Setting Aside Of Award

The Calcutta High Court has upheld a Single Judge's order setting aside an arbitral award after noting that the arbitrator had entered into constitutional considerations under Article 12 (Definition of State) in a dispute arising purely out of a commercial contract involving Indian Oil Corporation Limited. It observed that such an approach was misplaced and further held that the arbitrator had rewritten the terms of the contract and awarded damages without any supporting evidence. A Division...

Seat Of Arbitration Can Be Inferred From Exclusive Jurisdiction Clause: Delhi High Court

The Delhi High Court on 8 April 2026 held that where an agreement provides for arbitration and also contains an exclusive jurisdiction clause, such clause indicates the seat of arbitration even if the agreement does not expressly specify the seat or venue. A Single-Judge Bench of Justice Subramonium Prasad heard a petition under Section 11 of the Arbitration and Conciliation Act, 1996 filed by Pidge Technologies Pvt. Ltd. seeking appointment of an arbitrator in its dispute with Sliksync...

Delhi High Court Upholds Arbitral Award In Favour Of NCC In AIIMS Bhopal Project Dispute With Health Ministry

The Delhi High Court has upheld an arbitral award in favour of NCC Limited in a dispute arising from the construction of the medical college and hostel complex at AIIMS Bhopal, finding no ground for interference under Section 34 of the Arbitration and Conciliation Act, 1996. Justice Jasmeet Singh dismissed a petition filed by the Ministry of Health and Family Welfare challenging the arbitral award dated 8 May 2017 passed by a sole arbitrator.The court reiterated that proceedings under Section...

When Can Arbitral Awards Be Set Aside? Rajasthan High Court Lays Down Principles To Check Perversity

While underscoring that the Arbitration and Conciliation Act, 1996 was enacted to ensure effective and expeditious resolution of disputes, the Rajasthan High Court expressed concern over the increasing trend of arbitral awards being challenged “as if an appeal has been filed.” A division bench of Acting Chief Justice Sanjeev Prakash Sharma and Justice Shubha Mehta dismissed an appeal filed by the State of Rajasthan against an order of the Commercial Court which had rejected its objections under...

Courts Can Refuse To Appoint Arbitrator In Rare Cases Where No Arbitration Agreement Exists: Supreme Court

The Supreme Court on Thursday held that courts may refuse to refer parties to arbitration at the Section 11 stage in the rarest of rare cases where, even on a prima facie view, no arbitration agreement exists, carving out a narrow exception to the principle of minimal judicial interference. Clarifying that judicial scrutiny at the stage of appointing arbitrators is otherwise limited to examining the prima facie existence of an arbitration agreement and that courts should follow the principle of...

Delhi High Court Upholds 18% Interest On Arbitral Award, Says Tribunals Free To Grant Such Rates Under Pre-2015 Law

The Delhi High Court has upheld an arbitral award granting 18% interest on the awarded sum to a contractor, holding that tribunals have wide discretion to fix interest rates under the pre-2015 arbitration law. Justice Harish Vaidyanathan Shankar, in a dispute between the Municipal Corporation of Delhi (MCD) and Anil Gupta, however, modified the award to direct that interest would run only from July 6, 2008, the date of invocation of arbitration, instead of March 8, 2004. “Under the statutory...

Arbitrator Under MSCS Act Can Presume Membership If Not Specifically Denied: Bombay High Court

The Aurangabad Bench of the Bombay High Court on 30 March, held that membership of a cooperative society is a jurisdictional fact for invoking arbitration under Section 84 of the Multi-State Cooperative Societies Act (MSCS Act). However, if such membership is not specifically denied, the arbitrator may presume its existence from the material on record. Justice Arun R. Pedneker allowed the appeal filed by Yash Multi State Rural Co-operative Credit Society Ltd. (the Society) and set aside the...

Gujarat High Court Set Aside ₹25 Crore Arbitral Award As Tribunal Rewrote Contract, Ignored Reciprocal Obligations

The Gujarat High Court has upheld the setting aside of a Rs 25 crore arbitral award in a dispute over a failed industrial project, holding that the tribunal had effectively rewritten the contract by imposing an obligation to provide an approach road that was never agreed upon, while fastening liability despite the claimant not having set up the factory, which was a prerequisite for triggering the respondent's obligations. Dismissing the appeal, a Division Bench of Chief Justice Sunita Agarwal...