The High Court of Delhi dismissed two cross-petitions filed under Section 34 of the Arbitration and Conciliation Act, 1996, by Supreme Advertising Private Limited and Genus Power Infrastructures Limited. Both parties challenged different portions of an Arbitral Award dated March 7, 2014, and a Modified Award dated May 17, 2014. The Court ruled that the grounds raised in both petitions, which largely sought re-appreciation of evidence and re-evaluation of factual findings, fell outside the limited scope of judicial review under Section 34 of the Act.
The disputes arose from interconnected contractual arrangements for electrification projects awarded by UPPCL and JVVNL. The High Court, presided by Hon’ble Mr. Justice Harish Vaidyanathan Shankar, addressed the challenges separately.
O.M.P. (COMM.) 115/2016 (Supreme Advertising’s Challenge)
Supreme Advertising challenged the Arbitral Award on several grounds, all of which were rejected by the Court:
- Constitution of Tribunal: The Court ruled that Supreme Advertising waived its right to object to the two-member composition of the Arbitral Tribunal under Sections 4 and 16 of the Act, as it participated in the proceedings without demur.
- Counterclaims: The Court found the Arbitral Tribunal’s findings on counterclaims regarding material shortages, dismantled materials, and interest on delayed payments were based on a plausible appreciation of evidence and did not suffer from patent illegality or perversity.
- Limitation: The plea that counterclaims were barred by limitation was rejected because it was not raised before the Arbitral Tribunal, was not pleaded in the petition, and required an investigation into foundational facts.
- Modified Award: The Court held that the modifications made in the award on May 17, 2014, were permissible corrections of computational errors under Section 33 of the Act, not an impermissible review.
O.M.P. (COMM.) 159/2016 (Genus Power’s Challenge)
Genus Power assailed the Arbitral Award concerning execution of works and entitlement under final bills. The Court found that Genus Power failed to disclose any ground warranting interference under Section 34 of the Act. The objections primarily sought a re-evaluation of evidence and contractual interpretation, which is not permissible under the Court’s supervisory jurisdiction.
Both petitions were consequently dismissed, and no order as to costs was passed.




