VidhiSangh

Supreme Court of India · 19/10/2023

CHENNAI METRO RAIL LIMITED ADMINISTRATIVE BUILDING versus M/S TRANSTONNELSTROY AFCONS (JV) & ANR.

[2023] 14 S.C.R. 995 · 2023 INSC 932

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Summary

The Supreme Court refused to terminate an arbitral tribunal’s mandate because it had unilaterally increased fees, later reverting to the agreed rate. The increase was impermissible without consent, but did not itself create Seventh Schedule ineligibility. Alleged impartiality concerns outside that statutory category had to follow the Section 13 challenge procedure, with recourse after the award under Section 34. The tribunal was directed to resume proceedings.

Issues

  1. Whether the unilateral fee increase automatically rendered the arbitrators legally ineligible.
  2. Whether the applicant could bypass Section 13 and seek immediate termination under Section 14.

Provisions considered

Held

Result

Application dismissed and appeal disposed of; High Court order upheld. Arbitrators directed to resume proceedings and decide the case in accordance with law.

Judgment PDF: Supreme Court of India, [2023] 14 S.C.R. 995.