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2017 (3) TMI 1840

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..... he case would run thus: (i) A Letter of Intent was entered into between the claimant /the first respondent herein and the respondent/petitioner herein qua works relating to Concrete and Block work package for the project "Express Mall", Chennai. The said Letter of Intent was followed up with the notice of Award dated 01.07.2007 and an articles of agreement dated 20.07.2007. There were also extensions of time as agreed between the parties. (ii) Since disputes arose between the parties, the Arbitral Tribunal was constituted for adjudication of the disputes. The parties filed their respective claims before the Arbitral Tribunal and both the parties were also examined and documents also marked. On the side of the respondent, who is the peti .....

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..... tory application. 6. Inasmuch as the revision is filed under Article 227 of the Constitution of India, the powers of the High Court, the nature and scope and power of Article 227, which is supervisory in nature can be usefully seen. 7. The powers conferred under Article 227 is to ensure that all Subordinate Courts as well as statutory or Quasi Judicial Tribunal exercise the powers vested in them within the powers of their authority. It is the duty of the High Court to ensure that they all act in accordance with establishments of law. Normally the invocation of Article 227 of the Constitution is done when there is no revision or appeal is provided to the High Court. Therefore, the jurisdiction under Article 227 appears to be wider than the .....

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..... d) The parameters of interference by High Courts in exercise of their power of superintendence have been repeatedly laid down by this Court. In this regard the High Court must be guided by the principles laid down by the Constitution Bench of this Court in Waryam Singh vs. Amarnath [AIR 1954 SC 215] and the principles in Waryam Singh have been repeatedly followed by subsequent Constitution Benches and various other decisions of this Court. (e) According to the ratio in Waryam Singh, followed in subsequent cases, the High Court in exercise of its jurisdiction of superintendence can interfere in order only to keep the tribunals and Courts subordinate to it, "within the bounds of their authority". (f) In order to ensure that law is followe .....

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..... dment does not correspondingly expand the High Court's jurisdiction of superintendence under Article 227. (k) The power is discretionary and has to be exercised on equitable principle. In an appropriate case, the power can be exercised suo motu. (l) On a proper appreciation of the wide and unfettered power of the High Court under Article 227, it transpires that the main object of this Article is to keep strict administrative and judicial control by the High Court on the administration of justice within its territory. (m) The object of superintendence, both administrative and judicial, is to maintain efficiency, smooth and orderly functioning of the entire machinery of justice in such a way as it does not bring it into any disreput .....

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..... lic duty to perform. Unlike an Arbitrator acting under Section 10A of the Industrial Disputes Act, who though may be a private individual discharges public function, the Arbitral Tribunal, which has passed the impugned order is not connected with a statutory authority or discharge any official duty under a Statute. 10. In the instant case, none of the above features are present. It is a dispute between two individual entities and the order passed is interlocutory in nature. Although the petitioner herein has stated that he was vigilant in conducting the proceedings before the Arbitral Tribunal, had taken a calculated risk of not filing the documents at the relevant point of time, because of its voluminous nature. After the arguments commen .....

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..... l still be a forum chosen by the parties by agreement. We, therefore, disapprove of the stand adopted by some of the High Courts that any order passed by the Arbitral Tribunal is capable of being corrected by the High Court under Article 226 or 227 of the Constitution of India. Such an intervention by the High Courts is not permissible. 45. The object of minimizing judicial intervention while the matter is in the process of being arbitrated upon, will certainly be defeated if the High Court could be approached under Article 227 or under Article 226 of the Constitution against every order made by the Arbitral Tribunal. Therefore, it is necessary to indicate that once the arbitration has commenced in the Arbitral Tribunal, parties have to w .....

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