Patal Engineering Ltd


Eastern Electric Power Corporation Ltd. (NEEPCO)

Special Leave Petition (C) No’s 3584-85 of 2020

Provisions Involved

Section 34 and 37 of the Arbitration and Conciliation Act, 1996


The present case arises out of a domestic award between two Indian Entities. The ground of patent illegality is a ground available under the statute for setting aside a domestic award, if the decision of the arbitrator is found to be perverse or, so irrational that no reasonable person would have arrived at the same; or; the construction of the contract is such that no fair or reasonable would take. Respondent NEEPCO filed three applications under section 34 of the Arbitration and Conciliation Act, 1996 before the Additional Deputy Commissioner (Judicial), Shillong challenging the three arbitral awards dated 29.03.2016 in respect of Package I, II and III. The Additional Deputy Commissioner rejected the applications and upheld all the three arbitral awards. The respondent then filed an appeal before the HC which was allowed and the judgement passed by Additional Deputy Commissioner was set aside. Aggrieved by which the petitioner preferred special leave petition before the SC in SLP (C) No.s 13269- 13631 of 2019 which was dismissed holding that the Court is not inclined to interfere in the matters. Then again a review petition was filed in the HC against its order dated 26.02.2019, but it was dismissed. Aggrieved by which appellant has filed a Special Leave Petition again in the Apex Court.



While dealing with the appeal under section 37 of the Act, the HC has considered the matter at length and held that while interpreting the terms of contract, no reasonable man could have arrived at a different conclusion and that the awards


The HC was right in the dismissing the appeal petitions and there is no ground for interference with the impugned order by the SC Court. Hence, the SLPs are dismissed.