VidhiSangh

Supreme Court of India · 22/05/2020

PATEL ENGINEERING LTD. versus NORTH EASTERN ELECTRIC POWER CORPORATION LTD. (NEEPCO)

[2020] 4 S.C.R. 156 · 2020 INSC 403

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The refusal to review the judgment setting aside domestic arbitral awards was upheld. The 2015 amendments applied, but patent illegality remained available where the arbitrator’s contractual construction was not even a possible view. The High Court had applied that surviving test to awards ignoring vital clauses and relying on irrelevant considerations. Its citation of the displaced Western Geco approach did not establish an error apparent when the judgment was read as a whole.

Issues

  1. Whether the 2015 amendments displaced the ground on which the domestic awards were set aside.
  2. When contractual interpretation amounts to patent illegality.
  3. Whether the review orders disclosed an error warranting interference.

Provisions considered

Held

Result

All special leave petitions dismissed; refusal to review the judgment setting aside the awards left undisturbed. No order as to costs.

Judgment PDF: Supreme Court of India, [2020] 4 S.C.R. 156.