Scope Of Judicial Review Under Article 227 In Section 9 Arbitration Proceedings: A Shield Or A Sword?

In a pronouncement that delves into the interplay between Arbitration law and Constitutional writ jurisdiction, the Hon'ble Supreme Court in Jindal Steel and Power Ltd. and Another v. Bansal Infra Projects Pvt. Ltd. and Others, 2025 SCC OnLine SC 1041, examined the permissibility of judicial interference under Article 227 of the Constitution of India against an interim order passed under Section 9 of the Arbitration & Conciliation Act, 1996 (Arbitration Act).

Background of the Dispute

The dispute arose from a commercial contract and transaction involving encashment of a Bank Guarantee following termination of a Construction Contract, wherein the Respondent had sought interim protection under Section 9 of the Arbitration Act.