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Supreme Court of India 2021-11-13 allowed

Punjab State Civil Supplies Corporation Ltd & Anr vs M/s Ramesh Kumar and Company & Ors

Bench: 2 — Dhananjaya Y Chandrachud, A S Bopanna

In Brief

Punjab State Civil Supplies Corporation challenged a High Court judgment that set aside an arbitrator's award rejecting the respondent's claim for payment of wooden batons and forfeiture of security deposit. The High Court had held the award lacked proper reasons and decreed the respondent's entire claim with interest. The Supreme Court held the High Court exceeded its jurisdiction under Section 37 of the Arbitration and Conciliation Act 1996. The Court clarified that judicial review of arbitral awards is limited to grounds in Section 34, and courts cannot re-examine factual findings or award claims on the merits. The arbitrator's reasoned award deserved deference. The appeal was allowed and the High Court's judgment set aside.

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