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Oct 30, 2024

Supreme Court Holds that Arbitral Awards with Inadequate Reasons Should be Explained Rather than Set Aside

The Supreme Court in the case of OPG Power Generation (P) Ltd. v. Enexio Power Cooling Solutions India (P) Ltd.,[1] distinguished between an arbitral award, where reasons are unintelligible or perverse, and an arbitral award where reasons are there, but are inadequate or insufficient. For awards in the latter category, if the basis of the award is discernible and intelligible, then the Court need not set aside the award while exercising powers under Section 34 or Section 37 of the Arbitration Act, but rather may explain the existence of the underlying reason of the award.

[1] OPG Power Generation (P) Ltd. v. Enexio Power Cooling Solutions India (P) Ltd., 2024 SCC OnLine SC 2600.

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These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.

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