In Brief
B.B.M. Enterprises obtained an arbitral award of Rs. 1,38,44,430 plus interest and costs against the State of West Bengal. The State challenged the award under Section 34 of the Arbitration and Conciliation Act on factual grounds. The District Court dismissed the petition, holding that factual disagreement does not constitute valid grounds for challenge. The High Court remanded the case, stating the District Court had given inadequate reasons. The Supreme Court set aside the High Court's order, affirming the District Court's dismissal. The Court held that Section 34 challenges are limited to statutory grounds like procedural defects and manifest perversity, not factual re-appraisal. The interest rate was reduced to 15%, and three months were granted for payment.
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