Case Note & Summary
The dispute arose between the National Highways Authority of India (NHAI) and M/s. Progressive Construction Ltd. regarding an arbitral award. The Single Judge had set aside the award passed by a three-member tribunal, citing incorrect inferences and lack of consideration of vital evidence. This led to cross appeals under Section 37 of the Arbitration and Conciliation Act, 1996, which were confined to specific claims by the Division Bench. The NHAI challenged the interim order of the Division Bench. During the appeal, both parties agreed to a fresh adjudication of all claims before a Sole Arbitrator appointed by the Supreme Court. The court directed the Indian Council of Arbitration to conduct the proceedings afresh and appointed Justice G. S. Singhvi as the Sole Arbitrator. The court emphasized the need for the arbitrator's independence and ability to complete proceedings within the statutory period. The previous order of the Delhi High Court was set aside, rendering the appeals infructuous. The appeal was allowed with directions for fresh arbitration proceedings.
Headnote
A) Arbitration Law - Setting Aside of Award - Incorrect Inferences - Arbitration and Conciliation Act, 1996, Section 34 - The Single Judge set aside the arbitral award due to incorrect inferences drawn by the tribunal and failure to consider vital evidence. The court directed fresh adjudication of all claims and counterclaims by a Sole Arbitrator appointed by the court. Held that the previous findings were insufficient and required reevaluation (Paras 1-3).
Issue of Consideration
Whether the interim order of the Division Bench was justified and the appropriate course of action for the arbitration proceedings.
Final Decision
The Supreme Court allowed the appeal, set aside the interim order of the Division Bench, and directed fresh arbitration proceedings to be conducted by a Sole Arbitrator.
Law Points
- Arbitration proceedings
- Sole Arbitrator appointment
- Section 34 Arbitration and Conciliation Act
- 1996
- Section 37 Arbitration and Conciliation Act
- Independence and impartiality of arbitrator
