Welcome back to Caseon!
Log in today and discover expertly curated legal audios and how our AI-powered, tailor-made responses can empower you to navigate the complexities of your case.
Stay ahead of the curve—don’t miss out on the insights that could transform your legal practice!
As per case facts, the petitioner challenged an arbitral award stemming from a work contract awarded in 2006. Initially, in 2012, the Arbitral Tribunal considered only one of four claims,
...deeming others 'excepted matters.' The petitioner then moved the High Court in 2014, which directed the tribunal to adjudicate all claims. Despite this, significant delays occurred, including a period of inactivity and changes in arbitrators, with proceedings only properly commencing in 2020 and the award delivered in 2021. The petitioner had sought termination of the tribunal's mandate due to these prolonged delays. The Arbitral Tribunal rejected most of the petitioner's claims, citing the decade-long lapse which prevented site inspection and limited record availability. The High Court was then approached to set aside this award. The question arose whether an egregious and unexplained delay in arbitration proceedings, which demonstrably impairs the tribunal's ability to gather and assess evidence, constitutes a valid ground for setting aside the award under Section 34 of the Arbitration and Conciliation Act, 1996. Finally, the High Court held that the excessive and unexplained delay profoundly impacted the Arbitral Tribunal's findings and vitiated the final award. This delay rendered the award contrary to India's public policy and patently illegal. Consequently, the High Court set aside the arbitral award, granted costs to the petitioner, and allowed for the reconstitution of a new arbitral tribunal to re-adjudicate the claims.
Bench
Applied Acts & Sections
Section 14
–The Arbitration And Conciliation Act, 1996
Section 34
–The Arbitration And Conciliation Act, 1996
Legal Notes
Add a Note....