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SUPREME COURT OF INDIA
BABAR ALI
Vs.
Union of India
Decided on November 5, 1999
Arbitration and Conciliation Act, 1996 - Constitutionality - Judicial Review
Fact of the Case:
The court found that the Arbitration and Conciliation Act, 1996 is not unconstitutional and does not offend the basic structure of the Constitution of India. It affirmed the availability of judicial review for challenging the award in accordance with the procedure laid down in the Act.
Finding of the Court:
The court dismissed the special leave petition and endorsed the High Court's rejection of the challenge to the vires of the Act, affirming the availability of judicial scrutiny for arbitration awards.
Issues: Constitutionality of the Arbitration and Conciliation Act, 1996
Ratio Decidendi: The court held that the Act is not unconstitutional and affirmed the availability of judicial review for challenging arbitration awards.
Final Decision: The special leave petition was dismissed, and the High Court's rejection of the challenge to the vires of the Act was endorsed.
( 1 ) WE find that there is no question of the Arbitration and Conciliation Act, 1996 being unconstitutional or in any way offending the basic structure of the Constitution of India, as the High Court has rightly observed that judicial review is available for challenging the award in accordance with the procedure laid down therein. Only because the question of jurisdiction of the arbitrator is required to be considered after the award is passed and not at any penultimate stage by the appropriate court, it cannot be a ground for submitting that such an order is not subject to any judicial scrutiny. The time and manner of judicial scrutiny can legitimately be laid down by the Act From the Judgment and Order dated 24-9-1999 in CWP No. 5821 of 1999 of the High Court of Delhi at New Delhi passed by Parliament. The challenge to the vires of the Act was rightly rejected by the High Court. We fully endorse that view.
( 2 ) THE special leave petition is dismissed. Court Masters
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