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IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
SUDESH BANSAL
Hindustan Copper Limited – Appellant
Versus
Bhagwati Gases Ltd. (BGL) – Respondent
Judgment :
SUDESH BANSAL, J.
1. This is an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter for short “the A&C Act”) against the final order dated 08.01.2015 passed by the District Judge, Jhunjhunu, dismissing appellant’s application under Section 34 of the A&C Act and affirming the arbitral award dated 09.05.2009. The arbitral award dated 09.05.2009 was passed by the Sole Arbitrator Sh. Altaf Ahmed, Senior Advocate, whereby and whereunder the claim of appellant- HCL was disallowed, while the counter claim, put forth by respondent/ non-claimant- BGL was allowed to the tune of Rs.10,79,80,044/- (Principal Amount- Rs.6,88,20,333/- + Interest Amount- Rs.3,91,59,711/-). Against the arbitral award dated 09.05.2009, HCL filed objections under Section 34 of the A&C Act, seeking to set aside the arbitral award and to allow its claim against BGL. The objections filed by HCL against the arbitral award are double folded, first- against allowing the counter claim of BGL and second- against disallowing the claim of HCL. The District Judge, Jhunjhunu, vide final order dated 08.01.2015, impugned herein, dismissed the objections, not on merits, but merely by obser
The court confirmed that arbitral awards must not violate public policy or lack merit, and emphasized the necessity of properly adjudicating objections under Section 34 of the Arbitration and Concili....
The court can set aside an arbitral award under Section 34 if it violates substantive law, contract terms, or public policy, especially when procedural requirements aren't met or if the award is pate....
(1) If Arbitrator construes term of contract in a reasonable manner, award cannot be set aside with reference to deduction drawn from construction.(2) Setting aside of arbitral award – Narrow scope o....
The court affirmed that claims for breach of contract are subject to statutory limitation periods, which cannot be extended by claims of continuing breaches.
The appeal was allowed, reinstating the arbitrator's award which concluded that the termination of the contract was illegal due to failure in fulfilling mutual obligations concerning site availabilit....
The judiciary's role in arbitration is to ensure courts do not reassess merits but identify manifest errors and whether vital evidence was overlooked by the arbitral tribunal.
The court emphasized that arbitral awards should not be interfered with solely based on disagreements with findings, affirming the limited grounds for appeal under Section 34 of the Arbitration Act.
Court's intervention under Section 34 is valid when arbitral award lacks evidence or deviates from contractual terms, while retention of claims based on clear factual findings is upheld.
The challenge to the impugned award is predicated on Section 34(2A) and 34(2)(b)(ii) read with clauses (ii) and (iii) of Explanation 1 of the Arbitration and Conciliation Act, 1996.
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