The Delhi High Court has held that an order passed by an arbitral tribunal pursuant to the matter being remitted back to it cannot be treated as a fresh arbitral award.
Facts
On 14 December 2017, an arbitral award was passed in favour of the Respondent. Aggrieved, the Petitioner filed an application before the Tribunal under §33 of the Arbitration and Conciliation Act 1996 seeking the rectification of the award, which was dismissed.
The Petitioner subsequently challenged the award under §34(4) of the Act and the challenge was allowed. Accordingly, the matter was remitted back to the Tribunal and the Tribunal passed an award, essentially unaltered, with the noting that the award should now be read considering the High Court's order allowing the challenge. The Petitioner then sought to add additional grounds to challenge the award.
Decision
The Court allowed the Petitioner's application and held:
- An order passed by a tribunal pursuant to the matter being remitted back to it, is not a fresh award that can be separately challenged.
- A party cannot be precluded from raising additional grounds to challenge an award after the matter has been remitted back to the tribunal under 34(4) of the Act.
Conclusion
An order passed by an arbitral tribunal pursuant to the matter being remitted back to it, is not a fresh arbitral award that can be challenged separately.
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