M/S. HARSHA CONSTRUCTIONS versus UNION OF INDIA & ORS.

M/S. HARSHA CONSTRUCTIONS versus UNION OF INDIA & ORS.

It was not open to the Arbitrator to decide issues excluded from arbitration by the contract (excepted matters under Clause 39); the arbitral award concerning such issues is bad in law and quashed. The portion of the award dealing with arbitrable matters is upheld.

Parties
Appellant: M/S. Harsha Constructions; Respondents: Union of India & Ors.
Jurisdiction
India
Judgment Date
05 September 2014
Procedural Posture
Civil Appeal / Appeal From Judgment Dated 09.09.2005 of the High Court of Judicature, Andhra Pradesh at Hyderabad in CMA No. 476 of 2005
Outcome
Appeal partly allowed.
Legal Topics
Arbitrability of Excepted Matters, Arbitration Contract Requirements, Arbitral Award Validity
Arbitration Arbitrability of Excepted Matters Arbitration Contract Requirements Arbitral Award Validity

Case Brief

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Parties

M/S. Harsha Constructions

Appellant

Union of India & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment Dated 09.09.2005 of the High Court of Judicature, Andhra Pradesh at Hyderabad in CMA No. 476 of 2005

Legal Issues

  1. 1 Whether the Arbitrator can arbitrate on excepted matters specified in a contract of arbitration
  2. 2 Consequences if the Arbitrator decides such excepted issues

Ratio Decidendi

It was not open to the Arbitrator to decide issues excluded from arbitration by the contract (excepted matters under Clause 39); the arbitral award concerning such issues is bad in law and quashed. The portion of the award dealing with arbitrable matters is upheld.

Court Disposition

Appeal partly allowed.

Orders

  • Arbitral award regarding non-arbitrable (excepted) dispute quashed and set aside.
  • Portion of award concerning arbitrable disputes upheld.