Arbitration case insights Issue 53
May 27, 2020
The Supreme Court reinforces ‘patent illegality’ as a ground to challenge an arbitral award post 2015 Amendment
Disputes arose between Patel Engineering Ltd. (“Petitioner”) and North Eastern Electric Power Corporation Ltd. (“Respondent”) with respect to payment of extra lead in item nos. 2.7 and 3.4 of the BOQ in the three identical contracts for different packages which were referred for arbitration before the Ld. Sole Arbitrator (“Tribunal”).
The Tribunal made three declaratory arbitral awards dated 29 March 2016 (“Awards”) in favour of the Petitioner. The Respondent filed three applications under Section 34 of the Arbitration and Conciliation Act, 1996 (“Act”) challenging the Awards before the Additional Deputy Commissioner (Judicial), Shillong, which were dismissed vide common judgment dated 27 April 2018 (“Section 34 Judgment”).