HC SHOULD NOT ENTERTAIN A DISPUTE THAT IS ARBITRAL UNDER ARTICLE 226 UNLESS IT INVOLVES AN ISSUE OF PUBLIC INTEREST

6th April 2021

Recently, the SC observed that an HC should not entertain an arbitral dispute under Article 226 unless it involves a fundamental issue of public interest. The SC observed this while hearing an appeal by Rapid Metrorail Gurgaon Ltd (RMGL) against the order passed by Punjab and Haryana HC order in a writ filed by Haryana Mass Rapid Transportation Corporation (HSVP).

The bench observed that though there was an arbitration clause, the HC still entertained the writ petition.

DECISION

The Court further observed that the interference of HC was justifiable, as the metro lime would have disorder without it. The Court clarified that under article 226, the HC should not entertain arbitral disputes, as various remedies are present under the arbitration and conciliation Act.

The Court directed that RMGL and HSVP could pursue their remedies under the arbitration clause.

Author: Papiha Ghoshal