Facts & Background:

• The Haryana Tourism Limited (herein referred to as Corporation) was the Appellant.
• M/s Kandhari Beverages Limited was the Respondent.
• The Appellant and Respondent entered into an agreement to supply Aerated Cold Drinks at the Appellant's Tourist Complexes from 15.05.2001 to 14.05.2002. The respondent was obligated to pay Rs. 20 lakhs for Brand Promotion.
• The Corporation organised a Mango Mela on 07/08th July 2001, incurring Rs. 1 lakh in expenses. The Respondent claimed Rs. 13.92 lakhs, while the Corporation demanded Rs. 19 lakhs as sponsorship.
• The Corporation terminated the contract by letter dated 17.01.2002, which led to a dispute between the parties. The matter was referred to a sole arbitrator.
• The arbitrator rendered an award on 17.11.2005, directing the Respondent to pay Rs. 9.5 lakhs while dismissing the respondent’s counterclaim of Rs. 13.92 lakhs.
• The Respondent filed an objection petition under Section 34 of the Arbitration Act before the Additional District Judge, Chandigarh, which was dismissed on 25 September 2014.
• The Respondent appealed the dismissal under Section 37 of the Arbitration Act to the High Court, which quashed both the arbitrator's award and the order of the Additional District Judge.
• Aggrieved by the High Court's decision, the Appellant filed the present appeal.
  
  

Main Issue:

• Whether the High Court, in an appeal under Section 37 of the Arbitration & Conciliation Act, 1996, erred by entering into the merits of the claim and exercising jurisdiction not vested in it?