Section 16 order & Interim Award for Section 34 AA petition

the judgment dated 21.4.2026 of the Supreme Court in Civil Appeal No.4664 of 2026 of MCM Worldwide Private Limited   Vs.  Construction Industry Development Council

Factual matrix on the crux of the judgment

At the stage of framing of issues by the Arbitrator, the respondent filed application under Order VII Rule 11 CPC for rejection of claims as barred by limitation.   The Arbitrator had rejected the said application.

District Judge had dismissed section 34 petition as not maintainable.

The High Court had confirmed the said order but granted liberty to file section 16 application before the Arbitrator.

The Arbitrator had dismissed section 16 application on 19.5.2023.  Section 34 Court had decided petition on merits.  However, Section 37 Court allowed the appeal on merits.

In that context, the Supreme Court clarified the misunderstanding in the following manner –

If the issue of limitation is decided by the Arbitrator as preliminary issue, it would amount to “interim award” amenable to the challenge under section 34.

However, if the Arbitrator decides the same issue of limitation and rejects section 16 application, such an order is traceable under Section 16(2) and the scheme of Section 16(5) & (6) would apply.  As a result, the aggrieved party has to wait until final conclusion of final award.