Legal

Section 34 petition -Order under Sec.32(2)(c) of Arbitration Act – Maintainability

By the order dated 7.5.2024, the Arbitrator dismissed the application of the respondents for dismissal of arbitral proceedings in view of certain events which had become impossible proceedings as per Section 32(2)(c).

This was challenged in arbitration petition under Section 34 of the AA.  By the interim application, the objection was raised that since the order under Section 32 is not an “award”, section 34 petition is not maintainable. 

Distinction between Award & Order – Section 32 of the AA

HELD that order under Section 32(2) of AA can never be an arbitral award.  Section 34 is available only for challenging an arbitral award.  An order passed under Section 32(2)(c) leading to termination of the proceedings is not an arbitral award or interim award or partial award and therefore, the remedy of section 34 petition is not available.

There is indeed no clear remedy provided to an aggrieved party to challenge such an order.  However, the instant petition filed under Sections 14, 15 and 34 of the AA is not maintainable.

 

Order dated 23.6.2025 of the High Court of Bombay in Interim Application (Lodging) No.24652 of 2024 in Commercial Arbitration Petition No.389 of 2024 of Urban Infrastructure Trustees Limited in the matter of Neelkanth Mansions and Infrastructure Private Limited and Anr  Vs.   Urban Infrastructure Trustees Limited & Anr.

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