Nature of Litigation: Arbitration appeal under Section 37 of the Arbitration and Conciliation Act, 1996, challenging a judgment that set aside an arbitral award
Remedy Sought
The Appellant, Leaf Bio-Tech Pvt. Ltd., seeks to set aside the Impugned Judgment and restore the Arbitral Award in its favor
Filing Reason
The Impugned Judgment set aside the Arbitral Award on grounds of perversity and conflict with public policy, which the Appellant contends is erroneous
Previous Decisions
Arbitral Award dated August 8, 2005 ruled in favor of Leaf Biotech -- Impugned Judgment dated June 26, 2015 set aside the Arbitral Award -- Committee Report dated March 28, 2000 exonerated Leaf Biotech from odor complaints -- PIL Judgment dated July 27, 2000 disposed of writ petitions based on the Committee Report
Issues
Whether the Impugned Judgment setting aside the Arbitral Award was justified under Section 37 of the Arbitration and Conciliation Act, 1996 on grounds of perversity and conflict with public policy
Whether the Arbitral Award's findings on interest rates, counter-claim adjudication, and ex parte communication were valid
Submissions/Arguments
The Appellant argued that the Impugned Judgment ignored binding findings from the Committee Report and PIL Judgment, making it per incuriam
The Respondent argued that the Arbitral Award was perverse and in conflict with public policy due to high interest rates, non-adjudication of counter-claim, and ex parte communication
Ratio Decidendi
The Impugned Judgment was per incuriam as it disregarded binding findings from the Committee Report and PIL Judgment, which exonerated Leaf Biotech from allegations of breach and odor complaints -- The Arbitral Award's adjudication on interest rates and counter-claim was within its jurisdiction and not in conflict with public policy
Judgment Excerpts
Held that the Impugned Judgment was per incuriam as it ignored binding findings from the Committee Report and PIL Judgment
Held that the Arbitral Award's findings on interest rates and counter-claim were not perverse or in conflict with public policy
Procedural History
Arbitration invoked after TMC stopped garbage supply in May 1999 -- Arbitral Award dated August 8, 2005 ruled in favor of Leaf Biotech -- Impugned Judgment dated June 26, 2015 set aside the Arbitral Award -- Appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996 on November 3, 2025
