Interference By The Courts In Arbitral Awards: Supreme Court Reiterates The Minimal Intervention Principle

In a recent decision in NTPC Ltd. v. M/s Deconar Services Pvt. Ltd.¹, the Hon'ble Supreme Court reiterated that the Courts do not sit in appeal over the arbitral award and must give way to a possible view taken by the arbitrator. The present article briefly examines the findings rendered by the Hon'ble Supreme Court in the matter mentioned above.

Brief Facts

The appellant in the instant matter had issued two tenders for the construction of certain quarters in which the respondent had participated. After negotiations, the appellant decided to award both the contracts to the respondent based on an offer of a 16% rebate on the prices for completing the first project. The two letters of award were issued on 29 June 1988 to the respondent. However, the appellant caused some delay in handing over the land on which the construction was to occur. Consequently, there was a delay in the completion of the construction of quarters in both projects.