Arbitral Award Cannot Be Challenged In Writ Unless Conscience Of Court Is Shocked: Delhi HC

The Delhi High Court has recently held that when an arbitral tribunal passes an order whereby it rejects an application challenging its jurisdiction under Section 16 of the Arbitration and Conciliation Act 1996, the order cannot be challenged by invoking writ jurisdiction unless conscience of the court is shocked.

Bench comprising Justice Subramonium Prasad stated that Courts cannot interfere with order passed by Arbitral Tribunal by invoking its writ jurisdiction unless conscience of the court is shocked by such order.

The petitioner approached the Court challenging the Order passed by the Arbitrator rejecting an application under Section 16 of the Arbitration and Conciliation Act, 1996 on the ground that the dispute was not arbitrable for the reason that the contract entered between the parties was void ab initio.

The Court held that order passed by the Arbitrator is not so perverse so as to shock the conscious of the Court and that the Court was not inclined to interfere with the impugned Order.