In Brief
The Kerala State Legislature enacted the Kerala Revocation of Arbitration Clauses and Reopening of Awards Act, 1998, to cancel arbitration clauses and reopen awards in contracts related to the World Bank-financed Kallada Irrigation Project. The High Court invalidated the Act on two grounds: lack of legislative competence and encroachment on judicial power. The Supreme Court held the Act fell within State competence as it was referable to Entry 13 of the Concurrent List and had received Presidential assent. However, the Court found the Act unconstitutional for violating the doctrine of separation of powers by annulling awards made 'Rules of Court'—final judicial decisions. Courts making awards enforceable through judgment and decree exercise genuine judicial power requiring discretionary application of law, not mechanical administrative acts. The Act's annulment of such final decisions transgresses judicial authority.",
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