Supreme Court Affirms That High Courts Cannot Nullify Arbitral Proceedings While Exercising Power Under Section 15(2) Of The A&C Act

The Supreme Court, through its judgment dated 04.02.2026 in Ankhim Holdings Pvt. Ltd. & Anr. v. Zaveri Construction Pvt. Ltd.¹, held that while exercising powers under Section 15(2) of the A&C Act, a High Court could not declare prior arbitral proceedings as a nullity. Supreme Court held that the proper course under Section 15(2) was to appoint a substitute arbitrator to continue the proceedings from the stage at which they stood terminated.

The Supreme Court held that Section 15 must be read harmoniously with Sections 15(3) and 15(4) of the A&C Act, which preserve prior orders and proceedings. Emphasizing minimal judicial intervention and the selfcontained nature of the A&C Act, the Supreme Court held that the High Court could not, under the guise of substitution, set aside orders passed under Sections 16 or 17 of the A&C Act, outside the statutory remedies under Sections 37 or 34 of the A&C Act.