SC holds that Matters Specifically ‘Excepted’ by Parties to Contract are not Arbitrable

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Dec 30, 2019

SC holds that Matters Specifically ‘Excepted’ by Parties to Contract are not Arbitrable

SC in Mitra Guha Builders (India) Company v. Oil and Natural Gas Corporation Limited[1] upheld the decision of the Division Bench of the Delhi High Court, that an arbitrator ought not to have dealt with and passed an award on an issue which forms an ‘excepted matter’ and is excluded from the scope of the arbitration. The parties had consciously provided that the decision of the ‘Superintending Engineer’ shall be final with respect to an issue. Therefore, an arbitrator could not call into question the correctness of such decision and a remedy in such an ‘excepted matter’ , if any, would be available only in the ordinary course of law.

[1] Civil Appeal No. 5511-12 of 2012

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