Arbitration Law: Supreme Court Reaffirms Minimal Judicial Interference Under The Arbitration Act, 1940.

Background

In an interesting decision¹, the Supreme Court of India ("Supreme Court") reaffirmed the principle of judicial non-intervention over arbitral awards passed even under the Arbitration Act, 1940 ("Act").

Facts

National Thermal Power Corporation Limited ("NTPC") ("Appellant") issued two tenders for construction of certain quarters, which were subsequently awarded to Deconar Services Private Limited ("Deconar").

There was delay in handing over of the construction sites by NTPC, which resultantly delayed completion of both projects. Deconar invoked arbitration and referred the matter to a sole arbitrator. The sole arbitrator subsequently passed two awards dated 7 July 2000 in favor of Deconar ("Awards"). NTPC filed objections against both awards before the Delhi High Court ("High Court") under Sections 30 and 33 of the Act, which were dismissed (except for a modification of the interest rate granted by the sole arbitrator). A division bench of