AIROnline 2025 SC 311

Supreme Court Of India

(From : AIROnline 2019 MAD 2593)

Hon'ble Judge(s): Abhay S. Oka, Ujjal Bhuyan , JJ

(A) Arbitration and Conciliation Act (26 of 1996) , S.34, S.37— Setting aside arbitral award - Legality - Arbitral award by which claim of employer for liquidated damages on account of failure of contractor to complete work within time was granted, was set aside by single judge of High Court - Contractor had sought several extensions of time - Single judge had noted that there were rains and land slides during the contract period - It was observed by the single judge that clause in agreement which provided for liquidated damages on account of failure to complete work in time and clause for extension of time could not be read in isolation from each other - Single Judge had gone beyond the grounds provided in S. 34 of the Act of 1996 to set aside the arbitral award - View taken by the arbitral tribunal was possible and plausible view - Though different interpretation of the clause was possible, it will not bring challenge to arbitral award within four corners of S. 34 - Division Bench was justified in reversing order of Single Judge. AIROnline 2019 MAD 2593-Affirmed (Para 26 27 28) (B) Arbitration and Conciliation Act (26 of 1996) , S.34— Application for setting aside arbitral award - Scope of ....