In Brief
In this arbitration case, Jan De Nul Dredging India was awarded a ₹465-crore dredging contract by Tuticorin Port Trust and completed the work satisfactorily ahead of schedule. Disputes arose over final payment, leading to arbitration. The Arbitral Tribunal awarded compensation for idle time of a Backhoe Dredger. A Single Judge upheld the award under Section 34 of the Arbitration Act, recognizing limited judicial review. However, the High Court's Division Bench, in appeal under Section 37, modified the award by disallowing the idle-time claim. The Supreme Court held that appellate courts cannot re-examine arbitral awards on merit. Section 37 appeals are confined to Section 34 grounds—excess of jurisdiction, public policy violation, etc. Courts cannot substitute their interpretation of contract clauses for the Tribunal's, absent statutory grounds. The Division Bench exceeded its authority; the award was restored.
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