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Arbitration – Writ Petition challenging interlocutory orders of Arbitrator is maintainable

December 15, 2024 legaldeli

The respondent was given the contract of construction of building for ladies hostel and extension work of electrical buildings. The work was completed. However, the dispute was started on account of payment of the work done by the respondent.

In the arbitration proceedings, the petitioner section 16(2) AA application for framing preliminary issue of limitation. The Arbitrator rejected the said application. Initially, the High Court rejected the writ petition against the said order. However, the Supreme Court rejected the SLP but granted liberty to raise the plea.

The Arbitrator passed interim orders on various dates. These orders are challenged vide prayer clauses 37(b) to (g) of the writ petition.

Prayer clause (h) is different and pertained to the termination of mandate of Arbitrator on the ground of bias and malice and similar to Section 14 AA.

In that context, the question of the maintainability of the writ petition arose before the Division Bench even during the course of arbitration.

On consideration of various judgments of the Supreme Court, it was held that the jurisdiction of the High Court under Article 227 of the Constitution of India is not excluded from examining the validity of interlocutory prayers for which prayers are made in paras 37(a) to (g).

Coming to prayer 37(h) for termination of mandate of the Arbitrator on the ground of malice and bias (similar to Section 14 of the AA), it was held that it would be unjust to shut the doors of the petitioners.

Thus, it is not necessary that once the arbitration has commenced, the parties have to wait till the award is passed and the remedy is only under Section 34 and Section 37 AA.

The grievance of the petitioner touches to the principles of natural which cannot be overlooked just because the arbitration is in process.

The preliminary objections to the maintainability of writ petition were overruled.

Judgment dated 9.12.2024 of the Division Bench of the High Court of Bombay, Bench at Aurangabad, in Writ Petition No.9868 of 2024 of Shri Guru Gobind Singhji Institute and Technology, Vishnupuri, Nanded Vs. M/s. Kay Vee Enterprises

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