The core issue addressed is whether the High Court correctly used its supervisory power to grant Dexter Capital another chance to cross-examine a witness (RW-1), despite the Arbitral Tribunal having previously denied this request. The Supreme Court ultimately overturns the High Court’s decision, finding that the Arbitral Tribunal had already provided ample opportunity for cross-examination and that the High Court’s interference was not warranted, especially given the principle of judicial restraint in arbitration matters. The judgment highlights the importance of both equal treatment of parties and limiting judicial intervention in the arbitral process.
Arbitration and Conciliation Act, 1996, Section 11 and 18 – Constitution of India, Article 226/227 – Arbitration proceedings – Cross-examination – Whether the High Court has correctly exercised its supervisory jurisdiction under Article 227 in granting the respondent/claimant one more opportunity to cross- examine appellant/respondent’s witness, despite the Arbitral Tribunal rejecting such a prayer? – Held that the Arbitral Tribunal seems to have given full opportunity to all parties – Unrestrained cross-examination of RW-1 by the respondent/claimant has already exceeded 12 hours, but the respondent/claimant does not seem to be satisfied with it – When the Arbitral Tribunal by its order dated 09.10.2024 held – ‘that far and no further’, to the respondent/claimant’s endeavour to cross-examine RW-1, the High Court should have restrained itself from interfering – High Court failed to indicate under what circumstances the order passed by the Tribunal is perverse – All that the High Court has said is that cross-examination is one of the most valuable and effective means of discovering the truth – This is a normative statement, and nobody disputes the said principle – The only enquiry required was whether there is denial of opportunity for an effective cross- examination of the witness – There is absolutely no discussion about this aspect of the matter – Find no justification in the order passed by the High Court in interfering with the directions of the Arbitral Tribunal holding that full and sufficient opportunity to cross-examine RW-1 has already been given and no further extension of time is warranted – Appeal allowed – Arbitral Tribunal shall resume the proceedings and conclude the same as expeditiously as possible.
(Para 13 to 18)
Serosoft Solutions Pvt Ltd V. Dexter Capital Advisors Pvt Ltd
Supreme Court: 2025 INSC 26: (DoJ 03-01-2025)
