{"id":354658,"date":"2025-07-27T11:00:35","date_gmt":"2025-07-27T05:30:35","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=354658"},"modified":"2025-07-27T11:09:55","modified_gmt":"2025-07-27T05:39:55","slug":"delhi-high-court-rulings-on-arbitration-judgments","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/07\/27\/delhi-high-court-rulings-on-arbitration-judgments\/","title":{"rendered":"Cases Reported in HCC | Arbitration Law Decoded: Leading Delhi HC Judgments Under the Arbitration Act, 1996"},"content":{"rendered":"
\n

Stay updated with key 2024 High Court rulings on Arbitration law. This concise overview highlights recent HCC cases on arbitrability, seat v. venue, limitations, validity of arbitral awards under Section 34, appointment of arbitrators \u2014 offering valuable insights into how Indian courts are actively shaping the arbitration landscape.<\/p>\n

\n

A. Arbitration \u2014 Arbitration and Conciliation Act, 1996<\/a> \u2014 Ss. 34<\/a> and 36<\/a> \u2014<\/span> Arbitrability of case \u2014 Eye of the needle test \u2014 Evidence to substantiate claim \u2014 Evaluation of \u2014 Held, on facts, referring parties to tribunal in present case would be against public policy \u2014 Petition falls within definition of deadwood \u2014 Present case is non-arbitrable and fails to meet conditions to make out a case for referral on application of \u201ceye of the needle\u201d test \u2014 Petitioner did not take leave of S. 34 court to get directions seeking fresh adjudication or filed an appeal under S. 37 \u2014 Petition dismissed [Jaiprakash Associates Ltd. v. NHPC Ltd.<\/span>, (2025) 1 HCC (Del) 39]<\/a><\/span><\/p>\n<\/div>\n

\n

B. Arbitration \u2014 Arbitration and Conciliation Act, 1996<\/a> \u2014 Ss. 20<\/a>, 2(1)(e)<\/a> and 42<\/a> \u2014<\/span> Jurisdictional seat of arbitration once fixed under S. 20(2) by arbitrator \u2014 When changeable \u2014 Held, once jurisdictional \u201cseat\u201d of arbitration is fixed in terms of S. 20(2), then, without express mutual consent of parties to arbitration, \u201cthe seat\u201d cannot be changed \u2014 Further held, such consent must be express and clearly understood and agreed by parties \u2014 Arbitrator misapplied distinction between \u201cseat\u201d and \u201cvenue\u201d, as venue does not automatically become seat unless there is clear and documented agreement to that effect \u2014 Since no such agreement was found in record, arbitrator’s finding was set aside \u2014 Application disposed of [Union of India v. Arsh Constructions<\/span>, (2024) 5 HCC (Del) 69]<\/a><\/span><\/p>\n<\/div>\n

\n

C. Arbitration \u2014 Arbitration and Conciliation Act, 1996<\/a> \u2014 Ss. 34<\/a>, 37<\/a> and 16(5)<\/a> \u2014<\/span> Setting aside of arbitral award \u2014 Interim award adjudicating claim on merits \u2014 Rejection of plea of limitation by interim order prior to rendering of final award on other issues \u2014 Held, in terms of S. 34(3) of the Arbitration and Conciliation Act, 1996, award debtor could prefer application to set aside award within three months from date of receipt of award \u2014 Delay in filing application to set aside award was beyond period of thirty days \u2014 In terms of S. 16(5) of the Arbitration Act, Arbitral Tribunal may admit plea that it does not have jurisdiction even at belated stage, if it considers delay to be justified \u2014 Order passed by Tribunal on issue of limitation and concluding that claims were not time-barred, was an award on merits of claim and same could be challenged under S. 34 of the Arbitration Act, 1996 \u2014 Appeal allowed [Karam Chand Thapar v. NHPC<\/span>, (2024) 4 HCC (Del) 231]<\/a><\/span><\/p>\n<\/div>\n

\n

D. Arbitration \u2014 Arbitration and Conciliation Act, 1996<\/a> \u2014 Ss. 11(6)<\/a>, 16(1)<\/a>, 10<\/a> and 34<\/a> \u2014<\/span> Appointment of Arbitrators \u2014 Held, appointment of arbitrator made by Chief Justice of High Court not in accordance with S. 11(6) of the Arbitration Act, 1996 \u2014 Appointment to be made only by Supreme Court [Hala Kamel Zabal v. Arya Trading Ltd.<\/span>, (2024) 4 HCC (Del) 399]<\/a><\/span><\/p>\n<\/div>\n

\n

E. Arbitration \u2014 Arbitration and Conciliation Act, 1996<\/a> \u2014 S. 34<\/a> \u2014<\/span> Award \u2014 Setting aside arbitral award \u2014 Examination of arbitral award under S. 34 \u2014 Scope of \u2014 Partial setting aside of award, whether permitted \u2014 Held, award can be set aside on ground of patent illegality if: (a) view taken by Arbitral Tribunal is impossible or such that no reasonable person could arrive at it; (b) if Arbitral Tribunal exceeds its jurisdiction by going beyond contract, and adjudicating upon issues not referred to it; and (c) finding of Arbitral Tribunal is based on no evidence or it ignores material evidence \u2014 If two views possible, court will not interfere with view of Arbitral Tribunal if it has taken one of the two views \u2014 Reappreciation of evidence impermissible \u2014 Award can be set aside on ground of it being in contravention with public policy of India \u2014 Court does not function as court of appeal, and errors of fact cannot be corrected \u2014 Partial setting aside of arbitral award is valid and justified if the part proposed to be annulled is independent and can be removed without affecting rest of the award [IRCTC Ltd. v. Brandavan Food Products<\/span>, (2024) 4 HCC (Del) 565]<\/a><\/span><\/p>\n<\/div>\n

\n

F. Arbitration \u2014 Arbitration and Conciliation Act, 1996<\/a> \u2014 S. 34<\/a> \u2014<\/span> Setting aside of arbitral award \u2014 Recourse to court for \u2014 Non-consideration of issues pleaded \u2014 Duty to give reasons \u2014 Held, findings rendered by Arbitral Tribunal warranted further evaluation bearing in mind indubitable position of S. 65 of Contract Act \u2014 Argument of accelerated refund of amounts and penultimate directions framed by Arbitral Tribunal amounting to rewriting of contract neither examined nor conclusions in that respect rendered \u2014 Observation of Single Judge erroneous as Arbitral Tribunal failed to assign reasons dealing with these aspects \u2014 Judgment must speak and reflect due consideration of challenges \u2014 Arguments addressed in challenge to award of refund summarily and abruptly brushed aside \u2014 Applicability of S. 65 of the Contract Act neither examined nor evaluated \u2014 Challenge to award of refund unanswered by Single Judge \u2014 Single Judge erred in dismissing S. 34 of the Arbitration Act, 1996 petitions without according due consideration to challenge raised \u2014 Appeal allowed [Ajay Singh v. Kal Airways (P) Ltd.<\/span>, (2024) 3 HCC (Del) 117]<\/a><\/span><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Explore latest Cases reported in SCC’s High Court Cases (HCC) on arbitration covering critical legal issues such as arbitrability, seat v. venue, limitations in filing, validity of arbitral awards under Section 34, appointment of arbitrators, and public policy considerations.<\/p>\n","protected":false},"author":67522,"featured_media":354659,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,68098],"tags":[41517,86062,71958,86061,68396,56040,86065,86063,83562,80085,86064,27524,80079],"class_list":["post-354658","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casesreported","category-high-court-cases","tag-appointment-of-arbitrators","tag-arbitrability-test","tag-cases-reported-in-hcc","tag-delhi-high-court-arbitration-cases","tag-hcc","tag-high-court-cases","tag-interim-award-challenge","tag-jurisdiction-of-arbitrator","tag-latest-high-court-cases","tag-public-policy-in-arbitration","tag-seat-and-venue-in-arbitration","tag-section-34","tag-setting-aside-arbitral-award"],"yoast_head":"\nLatest Delhi High Court Rulings on Arbitration Law | SCC Times<\/title>\n<meta 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