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REKHA PALLI
Air India Limited – Appellant
Versus
All India Aircraft Engineers Association – Respondent
JUDGMENT
Rekha Palli, J. - The present decision disposes of two petitions that have been filed by Air India Ltd. under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter referred to as 'the Act'). These petitions challenge two distinct Arbitral Awards dated 25.05.2016, granted in favor of the first respondents in OMP (COMM) 33/2016 and OMP (COMM) 33/2016, i.e., All India Aircraft Engineers' Association and Indian Aircraft Technicians Association, respectively, regarding their claims. The impugned awards issued the following directions to the Petitioner:
| "OMP (COMM) 33/2016: Award in favour of Claimant/Respondent No.1 "49. In view of the foregoing discussions, award is passed allowing the claims of the claimants with directions to the respondents to pay to them a) Rs.57,92,47,222/- being the principal amount within three months; b) Simple interest at the rate of 12% per annum upon Rs.57,92,47,222/- from 1.9.2006 till the date of the Award within three months from the date of the award. c) Interest at the rate of 18% per annum fr |
Employees are entitled to wage arrears from 01.01.1997 despite a Presidential Directive limiting payments, as the directive was deemed unjustified by the Tribunal.
The Court held that the impugned award with respect to Claim 7 was not well-reasoned as required by the Act under Section 31(3), and the impugned award with respect to the award in Claim 11 is contra....
The Court held that the learned Arbitrator had erred in decreeing the award with respect to the rate of interest, and hence, the Award qua issue no. 20 with regards to the rate of interest is liable ....
The court upheld the arbitrator's award, emphasizing limited grounds for judicial interference in arbitration matters.
The court upheld the validity of the arbitral award, emphasizing limited grounds for judicial interference and the necessity of demonstrating clear error or illegality.
The limited scope of intervention by Courts in arbitral awards under Section 34 of the Arbitration and Conciliation Act, emphasizing the need to satisfy specific grounds for setting aside an arbitral....
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