Supreme Court clarifies Arbitration and Conciliation Act rules

Supreme Court clarifies Arbitration and Conciliation Act rules

The bench explains the two options available to any court

The Supreme Court has observed that a court, under the Arbitration and Conciliation Act, 1996 has no jurisdiction to remand the matter to the same arbitrator unless it was so consented by both the parties.

The bench comprising Justice MR Shah and Justice BV Nagarathna observed that only two options were available to the court considering the appeal under the Arbitration Act.

The top court explained that the High Court might either relegate the parties for a fresh arbitration or consider the appeal on merits on the basis of the material available on record within the scope and ambit of the jurisdiction under the Arbitration Act.

The bench referred to an earlier case where the Karnataka High Court had set aside the award passed by the arbitrator and remanded the matter to the arbitrator for a fresh decision. One of the parties had then challenged the order before the apex court.