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G. S. SANDHAWALIA, HARPREET KAUR JEEWAN
Union of India – Appellant
Versus
Isgec Heavy Engineering Limited – Respondent
JUDGMENT
Harpreet Kaur Jeewan, J.
The present appeal has been filed impugning the order dated 23.01.2023 passed by the Additional District Judge, Patiala, whereby the objection petition under section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act) filed by the appellant challenging the Arbitration Award dated 28.09.2020 passed by the Arbitration Tribunal was dismissed.
2. As per the facts on record, the respondent-contractor (hereinafter referred to as "the contractor") is engaged in providing engineering products such as process Equipment, Power Plants, Boilers, Plants and Machinery, Mechnical and Hydraulic Presses, Steel and Iron Castings, Contract Manufacturing and Trading, civil works etc. A purchase order No.01/17/4513/1/564187 dated 19.11.2016 for a total amount of Rs.17,31,11,872/- for supply of 40 Nos. 16 Cylinder Alco Engine Block fully machined was issued to the Contractor by the diesel loco Modernization Works, Patiala-appellant (hereinafter referred as "the Railways") and the delivery of the same was to be made within eight months from February, 2017 i.e. upto 30.09.2017. The delivery period was extended upto 30.11.2018 vide amendmen
The court emphasized that an arbitral award must be reasoned and address core contractual issues, with judicial intervention restricted to cases of patent illegality under Section 34 of the Arbitrati....
The interpretation of contractual clauses by an Arbitrator cannot be interfered with unless it is unreasonable or against settled legal principles.
The court affirmed that arbitral awards may only be set aside under specific grounds stated in Section 34, emphasizing judicial restraint from reevaluating evidence or merits beyond legal provisions.
The main legal point established in the judgment is that the court should not interfere with an arbitral award unless the arbitrator's conclusions are arbitrary, capricious, or perverse. The court's ....
The Court's power while exercising jurisdiction under Section 37 of the Act is limited, and it cannot undertake an independent assessment on the merits of the Award.
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....
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