Dispute

The Supreme Court of India in Indian Oil Corporation Ltd. v. M/s. Shree Ganesh Petroleum Rajgurunagar,[1] recently ruled that an award enhancing the rent payable under a separate agreement was liable to be set aside under Section 34(2)(a)(iv) of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), on the basis that the award was based on a dispute beyond the scope of submission to arbitration. The theme of what would be within the province of a tribunal or otherwise has often been the subject matter of challenges. For example, in Satyanarayana Construction Company v. Union of India & Others[2], the Supreme Court ruled that if the underlying contract fixed a rate of interest, an arbitrator could not rewrite its terms and award a higher rate.Continue Reading Indian Oil Corporation v. Shree Ganesh Petroleum: An arbitral tribunal’s powers to do justice are circumscribed by contract