Arbitral Award Cannot Be Challenged In Writ Petition, Party Must Use Remedy U/S 34 Of Arbitration Act: Delhi High Court

The Delhi High Court Bench of Justice Sachin Datta has held that it cannot entertain a writ petition challenging an arbitral award, and the petitioner should challenge the award by taking recourse to appropriate remedies under Section 34 of the Arbitration Act. Brief Facts: The present petition challenged an arbitral award passed pursuant to reference to arbitration under Section 18 of the MSMED Act 2006. The Arbitral Tribunal consisted of a sole arbitrator appointed by the DIAC. The petitioner contended that the arbitrator has exercised jurisdiction beyond the scope of reference. Also, the petitioner argued that the award is liable to be set aside as the arbitrator was completely devoid of the jurisdiction under the MSMED Act, 2006 to adjudicate the disputes. Observation of the court: The court observed it is impermissible for the petitioner to agitate these issues in the present petition under Article 226 of the Constitution of India. The impugned award having been rendered by the sole arbitrator, and the objections as regards (lack of) jurisdiction having been rejected by the sole arbitrator, the appropriate remedy for the petitioner is to assail the same by taking recourse to the remedies under the Arbitration and Conciliation Act, 1996. Moving further, the court relied on the judgment of the Supreme Court in India Glycols Limited and Anr. v. Micro and Small Enterprises Facilitation Council, Medchal-Malkajgiri and Ors (2023). The court held that it cannot entertain the present petition, and the petitioner should challenge the award by taking recourse to appropriate remedies, inter alia, under Section 34 of the Act. Consequently, the court disposed of the petition. Case Title: MAHANAGAR TELEPHONE NIGAM LTD v. MICRO AND SMALL ENTERPRISE FACILITATION COUNCIL AND OTHERSCitation: 2025 LiveLaw (Del) 44 Case Number: W.P.(C) 115/2025 and CM APPL.436/2025 (Stay) Counsel for the Petitioner: Mr. Chandan Kumar and Mr. Vikram Sharma, Advocates. Counsel for the Respondents: Dr. Anurag Kr. Agarwal, Adv. for R3 (through v/c) Date of Judgment: 08.01.2025 Click Here To Read/Download The Order

Arbitral Award Cannot Be Challenged In Writ Petition, Party Must Use Remedy U/S 34 Of Arbitration Act: Delhi High Court

Soumya Chakrabarti

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