Indian Oil Corporation Ltd vs Adarsh Nobel Corporation Ltd on 27 March, 2026

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    Delhi High Court

    Indian Oil Corporation Ltd vs Adarsh Nobel Corporation Ltd on 27 March, 2026

                              $~11
                              *         IN THE HIGH COURT OF DELHI AT NEW DELHI
                              %                                           Date of Decision: 27th March, 2026
                              +         ARB.P. 93/2026
                                        INDIAN OIL CORPORATION LTD.                                .....Petitioner
                                                      Through: None.
                                                      versus
    
                                        ADARSH NOBEL CORPORATION LTD.              .....Respondent
                                                      Through: Mr. A.K. Thakur, Mr. Rishi Raj, Mr.
                                                               Sujeet Kumar, Mr. Ningthem Oinam,
                                                               Advocates (M:9810141402)
                                        CORAM:
                                        HON'BLE MS. JUSTICE MINI PUSHKARNA
                                        MINI PUSHKARNA, J (ORAL):
    

    1. The present petition has been filed under Section 11(6) of the
    Arbitration and Conciliation Act, 1996 (“Arbitration Act“) seeking
    appointment of a sole arbitrator, for adjudication of disputes arising between
    the parties out of the Contract Agreement dated 06th January, 2018.

    2. The facts, as culled out from the pleadings, are as follows:

    SPONSORED

    I. The petitioner, being engaged in the activities of refining, production,
    etc., of natural gas and petrochemicals, had awarded the work of “Provision
    of Additional VR Tank at Paradip Refinery” to the respondent, vide Letter of
    Award dated 29th November, 2017 (“LOA”), which was to be completed
    within a period of 18 months from the date of the LOA.
    II. The respondent, on 11th June, 2018, stopped the work on the site in
    question. Further, despite multiple notices dated 29th June, 2018, 23rd July,
    2018 and 11th August, 2018 sent by the petitioner to the respondent, no
    visible action for resuming the work at the site in question was undertaken

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    By:HARIOM SHARMA
    Signing Date:29.03.2026
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    by the respondent.

    III. The petitioner issued a termination notice dated 13th December, 2018
    to the respondent, thereby, terminating the awarded Contract Agreement in
    terms of the Clause 7 of the General Conditions of Contract (“GCC”).
    IV. The petitioner, to protect its interests and for recovery of the
    expenses, on account of the failure of the respondent to complete the
    awarded work, had sent a communication dated 22 nd March, 2023, to the
    respondent. By way of the said communication, the petitioner claimed
    provisional liability of Rs. 4,88,06,932.83/-, against risk and expense
    recovery, from the respondent.

    V. In response to the aforesaid communication, the respondent
    approached the Micro and Small Enterprises Facilitation Council (“MSEF
    Council”), Orissa at Cuttack, by way of the petition bearing MSEFC Case
    No. 56/2022, under Section 18 of the Micro, Small and Medium Enterprises
    Development Act, 2006 (“MSMED Act“).

    VI. The MSEF Council passed an arbitral award dated 10th July, 2023,
    thereby, directing the petitioner to pay a sum of Rs. 2,43,14,318/- to the
    respondent, along with future interests.

    VII. Subsequently, the respondent filed an enforcement petition bearing
    EXP. No. 585/2023 before the Senior Civil Judge, Commercial Court,
    Bhubaneshwar, seeking enforcement of arbitral award dated 10th July, 2023,
    wherein, the Executing Court dismissed the objections filed by the
    petitioner, and proceeded to issue warrant of attachment vide order dated
    14th July, 2025.

    VIII. Being aggrieved by the arbitral award dated 10th July, 2023, the
    petitioner filed writ petitions being, W.P.(C) 30966/2024 and W.P.(C)

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    By:HARIOM SHARMA
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    20210/2025 before the Orissa High Court, whereby, the Orissa High Court
    by way of the judgments dated 20th September, 2025 and 10th October, 2025,
    respectively, set aside the arbitral award dated 10th July, 2023, on the ground
    of having been passed in lack of inherent jurisdiction.
    IX. The petitioner invoked the Arbitration Clause, i.e., Clause 9 of the
    GCC, by sending a Notice dated 30th June, 2025, to the respondent.
    X. Pursuant to the Notice dated 30th June, 2025, the respondent vide
    reply dated 27th July, 2025, refused the proposal of appointment of
    arbitrator, by relying upon the arbitral award dated 10th July, 2023, passed
    by MSEF Council in MSEFC Case No. 56/2022. Therefore, the present
    petition has been filed.

    3. Learned counsel appearing for the respondent has handed over to this
    Court a copy of the judgment dated 12th February, 2026, passed by the
    Division Bench of the High Court of Orissa at Cuttack, in appeals being
    W.A. No. 1677/2025 and W.A. No. 1856/2025, whereby, judgments dated
    20th September, 2025 and 10th October, 2025, have been set aside.

    4. This Court takes note of the submission made by learned counsel for
    the respondent that the respondent is a Micro, Small and Medium
    Enterprises (“MSME”), and was entitled to invoke the jurisdiction under the
    MSEF Council.

    5. It is to be noted that upon the respondent approaching the MSEF
    Council, an arbitral award dated 10th July, 2023 came to be passed. The
    petitioner herein filed objections to the said award by filing a petition under
    Section 34 of the Arbitration Act, in the District Court of Orissa.
    Subsequently, the petitioner herein unconditionally withdrew the said
    challenge on 21st October, 2024.

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    6. It is to be noted that the present petition has been filed by the
    petitioner before this Court, seeking appointment of an arbitrator on the
    ground that the arbitral award dated 10th July, 2023, passed by the MSEF
    Council has been set aside by the Orissa High Court in W.P.(C) 30966 of
    2024 and W.P. (C) No. 20210 of 2025, vide judgments dated 20th September,
    2025 and 10th October, 2025, respectively.

    7. This Court, however, notes that the aforesaid judgments have been set
    aside by the Division Bench of the Orissa High Court at Cuttack in W.A. No.
    1677/2025 and W.A. No. 1856/2025, as being devoid of merit and it has
    further directed the Executing Court to proceed with the execution process,
    within an outer limit of six months. The relevant paragraphs of the judgment
    dated 12th February, 2026 of the Division Bench of the Orissa High Court,
    read as under:

    “xxx xxx xxx

    4. Having heard counsel for the parties and having perused the appeal
    papers, we are inclined to grant indulgence in the matter as under and
    for the following reasons:

    4.1. Appellant was the contractor and his contract had been
    terminated eventually resulting into him filing MSEFC Case
    No.56/2022 u/s 18 of MSMED Act, 2006. Respondents having entered
    appearance through their counsel, had filed Written Statement
    wherein lack of jurisdiction over the subject matter, was not a plea.

    Battle lines came to be drawn on the basis of pleadings. Evidence was
    led and Award was made on 10.07.2023. It is not in dispute that the
    Appellant happens to be an MSME entity. Had the plea of lack of
    subject matter jurisdiction been raised, the Appellant would have
    answered the same and that the Facilitation Council would have
    treated it in its accumulated expertise. This apart, whether the
    contract in question was a „works contract‟ or otherwise is
    essentially a question of fact on which parties could lead evidence.
    That being the position, it was not open to the Respondents to
    contend that the Award was a nullity and therefore, that plea can be
    set up wherever the Award is sought to be executed. The Apex Court
    decision in A.V. Parayya Sastri v. Government of A.P., (2007) 4 SCC
    221 could not come to the rescue of Respondents since it was a case of

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    demonstrable fraud. At paragraphs-21 & 22, it is observed as under:

    “21. Now, it is well-settled principle of law that if any
    judgment or order is obtained by fraud, it cannot be said to
    be a judgment or order in law. Before three centuries, Chief
    Justice Edward Coke proclaimed:

    “Fraud avoids all judicial acts, ecclesiastical or
    temporal.”

    22. It is thus settled proposition of law that a judgment,
    decree or order obtained by playing fraud on the court,
    tribunal or authority is a nullity and non est in the eye of the
    law. Such a judgment, decree or order-by the first court or by
    the final court-has to be treated as nullity by every court,
    superior or inferior. It can be challenged in any court, at any
    time, in appeal, revision, writ or even in collateral
    proceedings.”

    It hardly needs to be stated that a decision is an authority for the
    proposition that is laid down in a given fact matrix, and not for all that
    which logically follows from what has been so laid down vide Lord
    Halsbury in Quinn v. Letham, [1901] AC 495 (HL).

    4.2. Respondents had filed ARBP No.11/2024 u/s 34 of the A and C
    Act, 1996. Learned counsel appearing for the Respondents very fairly
    stated that the ground of lack of jurisdiction was not taken up in this
    challenge. Subsequently, they unconditionally withdrew the said
    challenge on 21.10.2024. Here too, they had not taken up the plea
    that the Award itself was a nullity and therefore, they were
    withdrawing the challenge. Nor had they sought liberty to take up
    plea of the kind before the Executing Court. However, they resisted
    execution of the Award on the ground of lack of jurisdiction merely on
    the basis of a stray sentence in the pleadings of the Appellant, before
    the Facilitation Council. In the pleadings, it is averred “the
    respondents have utilized the supply and execution of work”. That is
    not the way pleadings of parties should be construed. In fact, such a
    construction was not placed on the said sentence when the Respondents
    had filed their Written Statement or in their challenge to the Award u/s.
    34
    of the A and C Act, 1996. It was Aristotle who said „one single
    swallow makes not the summer‟ in Nicomachean Ethics. The same
    applies to the case of Respondents.

    4.3. It hardly needs to be stated that where jurisdiction of a Court or
    Tribunal depends upon fact matrix, the party resisting the claim on
    the ground of lack of jurisdictional facts, has to plead it adequately
    and with fair degree of certainty. In the Written Statement filed by the

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    Respondents in the Arbitral Proceedings, not even a whisper is made
    in this regard. Jurisdiction is one thing and jurisdictional facts are
    another. To put it in other way, one can say that, absence of
    jurisdiction makes its exercise non-productive and therefore
    Award/order in such circumstance would be a nullity/non est.
    However, the question of absence of jurisdictional facts stands on a
    different footing. Such absence cannot be inferred by a litigant by his
    self-judgment, despite suffering an adverse order. The remedy
    provided by Special Law has to be invoked for invalidation of such
    order. Respondents in fact had invoked Sec. 34 of A and C Act 1996,
    rightly. Sub-Section 3 of this Section prescribes a specific period of
    limitation. The said challenge came to be unilaterally withdrawn
    without mentioning that the Award was a nullity. Has the ground of
    nullity been mentioned in the application for withdrawal of challenge,
    different considerations would have arisen. The Appellant had neither
    occasion nor opportunity to have his say on that aspect of the matter.
    Tribunal too did not have. The proposition that, where an Award is a
    nullity, its enforcement can be resisted even in collateral proceedings,
    is too broad to be accepted. It is not that nullity cannot be a ground
    for laying a challenge u/s 34, to the Award. Even in cases wherein
    invalidity is plainly visible, the Apex Court has taken the view that
    challenge has to be mounted.

    4.4. The Apex Court in State of Punjab v. Gurdev Singh, AIR 1992 SC
    111, has observed as under:

    “…the impugned dismissal order has at least a de facto
    operation unless and until it is declared to be void or nullity by
    a competent body or Court. In Smith v. East. Elloe Rural
    District Council, [1956] AC 736 at 769 Lord Redcliffe
    observed:

    “An order even if not made in good faith, is still an act
    capable of legal consequences. It bears no brand of
    invalidity upon its fore- head. Unless the necessary
    proceedings are taken at law to establish the cause of
    invalidity and to get it quashed or otherwise upset, it will
    remain as effective for its ostensible purpose as the most
    impeccable of orders.”

    Apropos to this principle, Prof. Wade states: “the principle
    must be equally true even where the ‘brand’ of invalidity’ is
    plainly visible; for their also the order can effectively be
    resisted in law only by obtaining the deci-sion of the Court
    (See: Administrative Law 6th Ed. p. 352). Prof. Wade sums up
    these principles:

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    “The truth of the matter is that the court will invalidate an
    order only if ‘the right remedy is sought by the right
    person in the right proceedings and circumstances. The
    order may be hypothetically a nullity, but the Court may
    refuse to quash it because of the plaintiff’s lack of
    standing, because he does not deserve a discretionary
    remedy, because he has waived his rights, or for some
    other legal reason. In any such case the ‘void’ order
    remains effective and is, in reality, valid. It follows that an
    order may be void for one purpose and valid for another,
    and that it may be void against one person but valid
    against another.”…

    The above observations should be a complete answer to the question
    of jurisdiction raised by learned counsel appearing for the
    Respondents.

    4.5. The conduct of the Respondents who happen to be an entity
    under Article 12 of the Constitution of India falls short of fairness
    standards obtaining in the realm of Public Law, to say the least. It
    did not take up the plea of lack of jurisdiction in the Arbitration
    proceedings before the Facilitation Council nor before the
    Commercial Court when Award was challenged u/s. 34 of the A and
    C Act, 1996. Nor did they tell the said Court whilst withdrawing the
    said challenge. Added, they had not sought for liberty at the hands of
    the Commercial Court, to take up such a plea in the Execution
    Proceedings. Article 12 entity has to conduct itself as a model litigant
    vide Dilbagh Rai Jarry v. Union of India, AIR 1974 SC 130. It cannot
    play the nefarious game of hide & seek in the legal battles. The
    culpable conduct of Respondents in delaying the payment under the
    Award is calculated to defraud the Appellant who has secured a just
    result at the hands of statutory arbitral authority. The culpable
    conduct disentitles them to go scathe-free. They were not entitled to
    any relief at the hands of learned Single Judge in writ jurisdiction.
    4.6. The above aspects have not been considered by the Writ Court
    while examining the claim of Respondents, who happened to be
    petitioners before the learned Single Judge. That has occasioned
    enormous injustice to the Appellant. Thus, the impugned orders suffer
    from errors apparent on their face warranting interference in these
    appeals for setting the injustice at naught.

    4.7. The other contention of learned panel counsel appearing for
    Respondents that the impugned order is made by the Single judge only
    u/a 227 as distinguished from Art. 226 of the Constitution of India and
    therefore, intra-court appeal is incompetent, does not merit
    acceptance. The subject Writ Petitions were filed by invoking both the
    Articles. The very impugned orders on their forehead mention both

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    these Articles. Even the subject matter of the dispute by its very nature
    attracts Art. 226. The finding of Executing Court that the Award does
    not require any stamping under the provisions of the Indian Stamp
    Act, 1899
    is not demonstrated to be wrong. Which provision of the
    said Act makes Award of the kind to be stamped, is not particularized.

    In the above circumstances, these appeals succeed; the
    impugned orders of the learned Single Judge are set at naught;
    Respondents‟ W.P.(C) No. 30966/2024 & W.P.(C) No. 20210/2025
    being devoid of merits are dismissed with a cost of Rs.50,000/-
    (Rupees Fifty Thousand) only to be remitted to the Appellants within
    eight weeks. The Executing Court shall accomplish the execution
    process within an outer limit of six months vide Periyammal v. V.
    Rajamani
    , 2025 INSC 329.”

    (Emphasis Supplied)

    8. Thus, it is clear that as far as arbitral award dated 10 th July, 2023,
    passed by the MSEF Council is concerned, the same has attained finality.

    9. At this stage, it would be apposite to refer to the judgment of this
    Court in the case of Idemia Syscom India Private Limited Versus
    Conjoinix Total Solutions Private Limited, 2025 SCC OnLine Del 1023,
    wherein, this Court while dealing with a petition filed under Section 11 of
    the Arbitration Act, delved into the purpose of Arbitration Act as well as of
    the MSMED Act, and had held that the MSMED Act, being specific law,
    prevails over the general law, i.e., Arbitration Act. Thus, it was held as
    follows:

    “xxx xxx xxx

    11. MSMED Act has been enacted for the facilitating the promotion
    and development and enhancing the competitiveness of micro, small
    and medium enterprises and for matters connected therewith or
    incidental thereto. Section 17 of the MSMED Act provides for the
    recovery of dues of the supplier from the buyer for goods supplied or
    services rendered. Section 18 (1) of the MSMED Act contains a non-
    obstante clause and provides that for any amount due under Section
    17
    , any party to the dispute may make a reference to the Micro and
    Small Enterprises Facilitation Council. Thereafter, the facilitation
    council would either conduct conciliation itself or refer the matter

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    for conciliation to any institution or centre providing alternate
    dispute resolution services. Only upon failure of such conciliation
    proceedings, arbitration proceedings are initiated, either by itself or
    by reference to any institution.

    12. While the A&C Act is the general law governing the field of
    arbitration, MSMED Act governs a very specific nature of disputes
    concerning MSME’s and it sets out a statutory mechanism for the
    payment of interest on delayed payments. MSMED Act being the
    specific law, and A&C Act being the general law, the specific law
    would prevail over the general law. Even otherwise. MSMED Act
    has been enacted subsequent to the A&C Act and the legislature is
    presumed to have been aware about the existence of A&C Act when
    the act was enacted. Sub-sections (1) and (4) of Section 18 contain
    non obstante clauses which have the effect of overriding any other
    law for the time being in force. Section 24 of the Act states that the
    provisions of sections 15 to 23 shall have effect notwithstanding
    anything inconsistent therewith contained in any other law for the
    time being in force. Thus, the legislative intent is clear that MSMED
    Act
    would have an overriding effect on the provisions of A&C Act.
    The provisions of MSMED Act would become ineffective if, by way
    of an independent arbitration agreement between the parties, the
    process mandated in Section 18 of the MSMED Act is sidestepped.
    Moreover, the fact that the petitioner has approached the Court under
    Section 11 of the A&C Act first would be of no help to him as the
    MSMED Act does not does not carve out any such exception to the
    non-obstante clause.

    13. Reference in this regard may be made to the decision of Supreme
    Court in Silpi Industries v. Kerala SRTC, (2021) 18 SCC
    790 wherein it was held as under:–

    “39. Thus, it is clear that out of the two legislations, the
    provisions of the MSMED Act will prevail, especially when it has
    overriding provision under Section 24 thereof. Thus, we hold that
    the MSMED Act, being a special statute, will have an overriding
    effect vis-à-vis the Arbitration and Conciliation Act, 1996, which
    is a general Act. Even if there is an agreement between the
    parties for resolution of disputes by arbitration, if a seller is
    covered by Micro, Small and Medium Enterprises Development
    Act, 2006
    , the seller can certainly approach the competent
    authority to make its claim. If any agreement between the parties
    is there, same is to be ignored in view of the statutory obligations
    and mechanism provided under the 2006 Act…”

    14. It is also deemed apposite to refer to the decision of the Supreme
    Court in Gujarat State Civil Supplies Corpn. Ltd. v. Mahakali Foods

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    (P) Ltd.
    , (2023) 6 SCC 401, wherein the Court, while affirming the
    decision in Silpi Industries (Supra), held as under:–

    “42. Thus, the Arbitration Act, 1996 in general governs the law of
    Arbitration and Conciliation, whereas the MSMED Act,
    2006
    governs specific nature of disputes arising between specific
    categories of persons, to be resolved by following a specific
    process through a specific forum. Ergo, the MSMED Act, 2006
    being a special law and the Arbitration Act, 1996 being a general
    law, the provisions of the MSMED Act would have precedence
    over or prevail over the Arbitration Act, 1996. In Silpi Industries
    case [Silpi Industries v. Kerala SRTC, (2021) 18 SCC 790] also,
    this Court had observed while considering the issue with regard to
    the maintainability and counter-claim in arbitration proceedings
    initiated as per Section 18(3) of the MSMED Act, 2006 that
    the MSMED Act, 2006 being a special legislation to protect
    MSMEs by setting out a statutory mechanism for the payment of
    interest on delayed payments, the said Act would override the
    provisions of the Arbitration Act, 1996 which is a general
    legislation. Even if the Arbitration Act, 1996 is treated as a special
    law, then also the MSMED Act, 2006 having been enacted
    subsequently in point of time i.e. in 2006, it would have an
    overriding effect, more particularly in view of Section 24 of
    the MSMED Act, 2006 which specifically gives an effect to the
    provisions of Sections 15 to 23 of the Act over any other law for
    the time being in force, which would also include the Arbitration
    Act, 1996
    .

    xxx

    44. The submissions made on behalf of the counsel for the buyers
    that a conscious omission of the word “agreement” in sub-section
    (1) of Section 18, which otherwise finds mention in Section 16 of
    the MSMED Act, 2006 implies that the arbitration agreement
    independently entered into between the parties as contemplated
    under Section 7 of the Arbitration Act, 1996 was not intended to
    be superseded by the provisions contained under Section 18 of
    the MSMED Act, 2006 also cannot be accepted. A private
    agreement between the parties cannot obliterate the statutory
    provisions. Once the statutory mechanism under sub-section (1) of
    Section 18 is triggered by any party, it would override any other
    agreement independently entered into between the parties, in view
    of the non obstante clauses contained in sub-sections (1) and (4)
    of Section 18. The provisions of Sections 15 to 23 have also
    overriding effect as contemplated in Section 24 of the MSMED
    Act, 2006 when anything inconsistent is contained in any other
    law for the time being in force. It cannot be gainsaid that while
    interpreting a statute, if two interpretations are possible, the one

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    which enhances the object of the Act should be preferred than the
    one which would frustrate the object of the Act. If submission
    made by the learned counsel for the buyers that the party to a
    dispute covered under the MSMED Act, 2006 cannot avail the
    remedy available under Section 18(1) of the MSMED Act,
    2006 when an independent arbitration agreement between the
    parties exists is accepted, the very purpose of enacting the
    MSMED Act, 2006 would get frustrated.

    xxx

    52. The upshot of the above is that:

    52.1. Chapter V of the MSMED Act, 2006 would override the
    provisions of the Arbitration Act, 1996.

    52.2. No party to a dispute with regard to any amount due under
    Section 17 of the MSMED Act, 2006 would be precluded from
    making a reference to the Micro and Small Enterprises
    Facilitation Council, though an independent arbitration
    agreement exists between the parties.

    52.4. The proceedings before the Facilitation
    Council/institute/centre acting as an arbitrator/Arbitral
    Tribunal under Section 18(3) of the MSMED Act, 2006 would
    be governed by the Arbitration Act, 1996.

    52.5. The Facilitation Council/institute/centre acting as an
    Arbitral Tribunal by virtue of Section 18(3) of the MSMED Act,
    2006 would be competent to rule on its own jurisdiction as also
    the other issues in view of Section 16 of the Arbitration Act,
    1996.”

    xxx xxx xxx”

    (Emphasis Supplied)

    10. Further, reference may also be made to the judgment passed by the
    Supreme Court in the case of K.V. George Versus Secretary to
    Government, Water and Power Department, Trivandrum and Another,
    (1989) 4 SCC 595, wherein, the Supreme Court has held that principles of
    res judicata shall also apply to the proceedings held under the Arbitration
    Act
    . The relevant paragraphs, in this regard, are reproduced as follows:

    “xxx xxx xxx

    16. With regard to the submission as to the applicability of the
    principles of res judicata as provided in Section 11 of the Code of

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    Civil Procedure to arbitration case, it is to be noted that Section 41
    of the Arbitration Act provides that the provisions of the Code of
    Civil Procedure
    will apply to the arbitration proceedings. The
    provisions of res judicata are based on the principles that there shall
    be no multiplicity of proceedings and there shall be finality of
    proceedings. This is applicable to the arbitration proceedings as
    well. It is convenient to refer to the decision in Daryao v. State of
    U.P.
    [AIR 1961 SC 1457 : (1962) 1 SCR 574,582-83] wherein it has
    been held that the principles of res judicata will apply even to
    proceedings under Articles 32 and 226 of the Constitution of India. It
    has been observed that:

    “Now, the rule of res judicata as indicated in Section 11 of the
    Code of Civil Procedure has no doubt some technical aspects,
    for instance the rule of constructive res judicata may be said to
    be technical; but the basis on which the said rule rests is
    founded on considerations of public policy. It is in the interest of
    the public at large that a finality should attach to the binding
    decisions pronounced by courts of competent jurisdiction, and it
    is also in the public interest that individuals should not be vexed
    twice over with the same kind of litigation. If these two
    principles form the foundation of the general rule of res judicata
    they cannot be treated as irrelevant or inadmissible even in
    dealing with fundamental rights in petitions filed under Article

    32.”

    17. In Satish Kumar v. Surinder Kumar [AIR 1970 SC 833 : (1969) 2
    SCR 244 quoting from an unreported judgment in Uttam Singh Dugal
    & Co. v. Union of India, Civil Appeal No. 162 of 1962, dated 11-10-
    1962 (SC)] it has been observed that:

    “The true legal position in regard to the effect of an award is
    not in dispute. It is well settled that as a general rule, all claims
    which are the subject-matter of a reference to arbitration
    merge in the award which is pronounced in the proceedings
    before the arbitrator and that after an award has been
    pronounced, the rights and liabilities of the parties in respect
    of the said claims can be determined only on the basis of the
    said award. After an award is pronounced, no action can be
    started on the original claim which had been the subject-
    matter of the reference…. This conclusion, according to the
    learned Judge, is based upon the elementary principle that, as
    between the parties and their privies, an award is entitled to
    that respect which is due to judgment of a court of last resort.
    Therefore, if the award which has been pronounced between
    the parties has in fact, or can, in law, be deemed to have dealt

    Signature Not Verified
    Digitally Signed ARB.P. 93/2026 Page 12 of 13
    By:HARIOM SHARMA
    Signing Date:29.03.2026
    14:06:42
    with the present dispute, the second reference would be
    incompetent. This position also has not been and cannot be
    seriously disputed.”

    18. Considering the above observations of this Court in the aforesaid
    cases we hold that the principle of res judicata or for that the
    principles of constructive res judicata apply to arbitration
    proceedings and as such the award made in the second arbitration
    proceeding being Arbitration Case No. 276 of 1980 cannot be
    sustained and is therefore, set aside. The High Court has rightly
    allowed the FMA No. 304 of 1982 holding that the appellant
    contractor was precluded from seeking the second reference. No other
    points have been raised before us by the appellant.
    xxx xxx xxx”

    (Emphasis Supplied)

    11. Therefore, as a sequitur to the aforesaid, this Court is of the view that
    once there is a valid arbitration award passed after following the due process
    by the MSEF Council, second invocation of the arbitration on the same
    dispute by the petitioner, would not be maintainable.

    12. Thus, no merit is found in the present petition. The same is
    accordingly dismissed.

    MINI PUSHKARNA, J
    MARCH 27, 2026/au

    Signature Not Verified
    Digitally Signed ARB.P. 93/2026 Page 13 of 13
    By:HARIOM SHARMA
    Signing Date:29.03.2026
    14:06:42



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