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MAHESH CHANDRA TRIPATHI, PRASHANT KUMAR
State of Uttar Pradesh – Appellant
Versus
Virat Construction – Respondent
JUDGMENT :
M.C. Tripathi, J.
1. Heard Sri Manish Goyal, learned Additional Advocate General assisted by Sri Devansh Rathore, learned Additional Chief Standing Counsel for the State-appellants and Sri Jagat Narayan Mishra, learned counsel for the opposite party.
2. The instant appeal under Section 37 of 1996 Act, [Arbitration and Conciliation Act, 1996] has been filed seeking quashing of the impugned judgment and order dated 14-02-2023 passed by the Presiding Officer, Commercial Court, Jhansi in Arbitration Case No. 31 of 2022 (State of U.P. Vs. M/S Virat Construction), arising out of Arbitration Case decided between the parties by the Sole Arbitrator on 03-05-2022.
Relevant factual aspects and background
3. A tender was invited on 01-08-2008 by the appellants for the construction of Head Regulator at Km.0.410 of Margin Bandh to protect the Banda City from the flood of Cane River. In response to it, the contractor/opposite party no.2/claimant applied and his bid was found to be responsive, when tender was opened on 10-09-2008. Accordingly, the tender was awarded to the claimant and letter of acceptance was issued on 07-11-2008. In accordance with the letter of acceptance dated 07-11-2008
The court affirmed that judicial intervention in arbitral awards is limited to grounds of public policy or patent illegality, emphasizing respect for the Arbitrator's findings.
The court reaffirmed the limited scope of judicial review of arbitral awards under Sections 34 and 37 of the Arbitration and Conciliation Act, emphasizing that courts cannot reappraise evidence or in....
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 limited grounds for interference with an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996, emphasize the concept of patent illegality and the criteria for setting asi....
The judgment emphasizes the limited scope of interference with arbitral awards and the principle that courts should not interfere with arbitral awards unless there is a patent illegality or violation....
A tribunal must follow natural justice principles, allowing parties to present evidence; failure to do so renders an award susceptible to being set aside.
The court emphasized that judicial interference with arbitral awards is strictly limited, focusing only on issues of public policy or jurisdictional errors and cannot re-evaluate the merits of the aw....
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