Patel Engineering Ltd. vs. North Eastern Electric Power Corporation Ltd. (NEEPCO)
2020 INSC 403; [2020] 4 S.C.R. 156
Coram: Hon’ble Justice R. Banumathi; Hon’ble Justice Indu Malhotra and Hon’ble & Justice Aniruddha Bose
Forum: Hon’ble Supreme Court of India
Case No.: Special Leave Petition (C) Nos. 3584-85 of 2020 with Special Leave Petition (C) Nos. 3438-3439 of 2020 & Special Leave Petition (C) Nos. 3434-3435 of 2020
Date of Decision: May 22, 2020
Conclusion
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Facts & Background:

  • Patel Engineering Private Limited was the Petitioner.
  • North Eastern Electric Power Corporation Ltd. (NEEPCO) was the Respondent.
  • In the dispute between the Petitioner and Respondent, the sole arbitrator issued awards on 29.03.2016 for Package-I, Package-II, and Package-III, determining the rate for extra lead transportation under Clause 33(ii)(a) of the contract.
  • NEEPCO filed 3 applications under Section 34 before the Additional Deputy Commissioner (Judicial), Shillong, on 27.04.2018, challenging the rejected awards.
  • NEEPCO appealed to the High Court, which, on 26.02.2019, allowed the appeals and set aside the order of the Additional Deputy Commissioner (Judicial).
  • The Petitioner filed Special Leave Petitions (SLPs) before the Supreme Court, which were dismissed on 19.07.2019.
  • The Petitioner filed review petitions before the High Court, which were dismissed on 10.10.2019 due to lack of merit and delay.
  • Hence, the present appeal.

Main Issue:

  • Whether the High Court correctly applied the principle of patent illegality under Section 34(2A) of the Arbitration Act to set aside the domestic arbitral award?
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