Judicial Review and Fresh Adjudication in Arbitration Case

In a recent legal case, the court’s focus on judicial review and fresh adjudication in arbitration matters marks a significant development. The court’s decision underscores the crucial role of legal analysis and procedural adherence in ensuring fair and just outcomes in arbitration disputes. Let’s delve deeper into the implications of this ruling.

Facts

  • The Division Bench directed that the Appeals be limited to specific findings on claim nos. 1(i) and (ii); and counter claim (a)
  • Cross appeals were filed by both parties under Section 37 before the Division Bench
  • The arbitral tribunal made incorrect inferences from the documents and overlooked crucial evidence
  • Several claims and counterclaims were rejected, allowing parties to re-raise them following proper procedures
  • The present Appeal stemmed from the Single Judge’s decision under Section 34, largely setting aside the tribunal’s Award

Also Read: Upholding Judicial Integrity: Importance of Reasoned Judgments

Decision

  • The Appellant-NHAI challenged the interim Order dated 04.12.2019.
  • Justice G. S. Singhvi, former Judge of the Court, appointed as the Sole Arbitrator.
  • Sole Arbitrator to adjudicate all claims and counter claims afresh.
  • Sole Arbitrator may appoint qualified Engineer/s or Expert/s for assistance.
  • Sole Arbitrator to fix fees after consultation with parties, to be borne equally.
  • Appointment of Sole Arbitrator subject to Section 12 declarations on independence and impartiality.
  • Parties to approach Indian Council of Arbitration within 2 weeks to fix date of arbitral proceedings.
  • Appeals under Section 37 of the Arbitration Act pending before Delhi High Court deemed infructuous.
  • Entire record of arbitral proceedings to be collected from previous tribunal by Indian Council of Arbitration.
  • Parties agreed to fresh adjudication of all claims before the Sole Arbitrator.
  • Order dated 04.12.2019 by Delhi High Court set aside.
  • Registry to provide Appeal paper-book to Indian Council of Arbitration for further proceedings.

Also Read: Analysis of Consent Orders and Appellants’ Rights

Case Title: NATIONAL HIGHWAY AUTHORITY OF INDIA Vs. M/S PROGRESSIVE CONSTRUCTION LTD (2021 INSC 84)

Case Number: C.A. No.-000542-000542 / 2021

Click here to read/download original judgement

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