Supreme Court Judgment: Limited Scope for High Court Interference in Arbitration Proceedings [January 3, 2025]

Key Observations

• High Court’s Role Limited: Interference under Articles 226/227 of the Constitution of India in arbitration matters is permissible only in cases of complete perversity that “must stare in the face.”
• Judicial Restraint in Arbitration: Excessive judicial interference can undermine the efficiency and integrity of the arbitral process. Courts must exercise jurisdiction in “exceptional rarity” or cases of bad faith.
• Perversity Not Established: The Supreme Court noted that the High Court had failed to identify any explicit perversity in the Arbitral Tribunal’s decision to deny further cross-examination of a witness.

---

Judgment Highlights

1. The Arbitral Tribunal had already provided adequate time for cross-examination, which spanned over multiple sessions totaling more than 12 hours.
2. The High Court’s reasoning—relying on general principles of cross-examination—did not justify overruling the Tribunal’s decision.
3. The Supreme Court reinstated the Arbitral Tribunal’s order, emphasizing the need for courts to respect the autonomy of arbitration.

---

Background

The case arose from a contractual dispute between Serosoft Solutions Pvt. Ltd. and Dexter Capital Advisors Pvt. Ltd. regarding unpaid advisory fees. After the Tribunal denied further cross-examination time for a witness (RW-1), the respondent approached the High Court, which reversed the Tribunal’s order. The Supreme Court overruled the High Court, upholding the Tribunal’s decision.

---

Supreme Court’s Directions

• The Arbitral Tribunal should resume proceedings promptly and conclude them expeditiously.

---

Read the Complete Judgment

---

Also Read:

• Internship Opportunity at National Legal Services Authority, Delhi
• 1st SRMUH Moot Court Competition 2025 by SRM University, Delhi-NCR
• Contempt Proceedings Initiated Against Shardul Amarchand Mangaldas
• II Bennett International Moot Court Competition 2025 by Bennett University
• Exclusive Interview with Senior Advocate Gourab Banerji on Arbitration in India
• Summer Research Fellowship (EU) 2025 by Institute for Law & AI

This judgment underscores the importance of judicial restraint in arbitration and reinforces the principle of minimal court interference in arbitral proceedings.