This commercial appeal was preferred under Section 37 of the Arbitration and Conciliation Act, 1996, read with Section 13 of the Commercial Courts Act, 2015, by the appellant-contractor against an order passed by the Commercial Court which had previously dismissed the appellant’s petition under Section 34 challenging an adverse arbitral award. The dispute arose out of a tender awarded to the appellant for the construction of a Student Centre at NSIT, which suffered a delay of 761 days, prompting the respondent to deduct compensation from the final bill and leading the appellant to file claims for damages and unpaid amounts. The Sole Arbitrator rejected the appellant’s claims after thoroughly evaluating the evidence regarding site hindrances, drawing revisions, and project timelines. The Division Bench of the Delhi High Court held that the appellate power under Section 37 is extremely narrow, serving only to supervise whether the court under Section 34 exceeded its jurisdiction, and that re-appreciating evidence or substituting factual findings is impermissible. Finding no patent illegality, perversity, or violation of public policy, the High Court dismissed the appeal.
- Nature of the Dispute & Proceedings:
- The appellant was awarded a contract for constructing the Student Centre at NSIT valued at Rs. 64,44,290/- plus GST, scheduled to begin on 26.02.2016 and complete by 25.08.2016, but actually completed with a delay of 761 days on 25.09.2018.
- The respondent deducted Rs. 68,542/- from the final bill as compensation for delay, whereas the appellant contended that the delay was attributable to the university due to delayed drawings, site hindrances (trees and HT cables), and electrical work delays by other agencies.
- Upon invoking arbitration, the Sole Arbitrator rejected the appellant’s claims, a decision subsequently affirmed by the Commercial Court under Section 34 of the Act.
- Scope of Judicial Review under Sections 34 and 37:
- The court emphasized that the jurisdiction under Section 34 is strictly supervisory and not appellate, prohibiting a fresh evaluation of evidence or rewriting contractual interpretations.
- Citing precedents like Punjab State Civil Supplies Corpn. Ltd. v. Sanman Rice Mills, the High Court reiterated that the appellate scope under Section 37 is even more summary, confined strictly to verifying whether the Section 34 court stayed within its legal boundaries. An appellate court cannot act as an ordinary court of appeal to re-weigh evidence or choose a “better” view.
- Evaluation of Arbitral Findings on Delay:
- The Arbitrator had independently analyzed contemporaneous correspondence and records, concluding that initial hindrances like trees were cleared swiftly, excavation proceeded despite them, and drawing revisions were routine during execution.
- The High Court noted that the appellant’s contentions merely invited the court to re-assess factual findings, which is impermissible unless the findings are demonstrably perverse, based on no evidence, or ignore crucial material.
- Conclusion:
- The appellant failed to demonstrate any patent illegality apparent on the face of the award, conflict with public policy, or perversity.
- The appeal was dismissed as devoid of merit, along with all pending applications.
2026 DHC 6305
Nitin Kumar Sharma v. Netaji Subhas University of Technology (NSIT) (D.O.J. 05.08.2026)




