URMILA KUMARI vs HP STATE FOREST CORPORATION
- Court
- High Court of Himachal Pradesh
2026:HHC:36857
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
High Court of H.P.
Arbitration Appeal No. : 08 of 2015
Reserved on : 19.08.2026
Decided on : 31.08.2026
Uploaded on : 31.08.2026
Urmila Kumari …Appellant.
Versus
H.P. State Forest Corporation …Respondent
The Hon’ble Mr. Justice Virender Singh, Judge.
1
Whether approved for reporting?
Yes.
For the petitioner : Mr. Lokesh Thakur, Advocate,
vice Mr. G.R. Palsra, Advocate.
For the respondent : Mr. D.S. Kainthla, Advocate.
Virender Singh, Judge
AppellantUrmila Kumari has filed the present
application under Section 37 of the Arbitration and
Conciliation Act, 1996 (hereinafter referred to as ‘the Act’),
against the judgment dated 20.03.2015, passed by the
Court of learned District Judge, Mandi, District Mandi,
H.P. (hereinafter referred to as ‘the learned District Judge).
2. By way of the judgment dated 20.03.2015,
passed in Petition No. 04/2009, titled as ‘Urmila Kumari
Versus H.P. State Forest Corporation’ learned District
1
Whether Reporters of local papers may be allowed to see the judgment? Yes.
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Judge, has dismissed the objections filed under Section 34
High Court of H.P.
of the Act, preferred by the present appellant, against the
award dated 30.01.2009.
3. For the sake of convenience, the parties to the
present lis, are, hereinafter referred to, in the same
manner, as were, referred to, by the learned District Judge.
4. Brief facts, leading to the filing of the present
appeal, before this Court, as borne out from the record,
may be summed up, as under:
4.1 Managing Director, HP State Forest Corporation
Ltd. Shimla, vide order dated 06.08.2007, has appointed
the Director (North) HPSFC Ltd., Dharamshala, as
Arbitrator, with respect to the claim in respect of shortfall
of resin in Lot No. 9/2006 (Suket) of FWD, Sundernagar.
Thereafter, the Arbitrator has passed the award on
30.01.2009, by granting the following relief:
“Keeping in view, the above discussion, the relief of Rs.
7,91,559/ is given to Nonclaimant and the claim of the
claimant is restricted to Rs. 5,07,517/.
Therefore, it is ordered that the said amount of Rs.
5,07,517/ be deposited by Nonclaimant with the
claimant within 90 days from the date of Award.”
5. Aggrieved from the said award, the present
appellantobjector has preferred the objections before the
learned District Judge, on the ground that the counter
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claim, which was duly supported with documentary, as
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well as, oral evidence has not been appreciated by the
Arbitrator and the genuine claim of the objector has
wrongly been dismissed.
6. In addition to this, the award has also been
assailed on the ground that the entire claim of the claimant
should have been rejected. Findings are stated to be self
contradictory. According to the appellant, the rebate on
account of adverse climatic condition has wrongly been
given to the nonclaimant at the rate of 10%, whereas, it
should have been for the entire target.
7. These objections were considered and rejected
by the learned District Judge, vide award dated
20.03.2015.
8. Aggrieved from the said judgment, present
appeal has been preferred by the nonclaimant, before this
Court, assailing the award, which has been upheld by the
learned District Judge, on the ground that it is the case of
the nonclaimant before the Arbitrator that very short time
has been given to her, because the agreement was
executed on 13.04.2006 and the target has to be achieved
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on or before 31.12.2006 (less than eight months’ time was
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given). The said time is stated to be not reasonable.
9. Highlighting the weather condition of the area,
it is the further case of the nonclaimant that labour was
not available during the rainy season and no work of
extraction of resin can be done during that period.
10. According to the nonclaimant, less than four
months have been given to complete the awarded work.
Highlighting the fact that it has been proved on record that
6000 new trees were marked and from the new trees, there
is possibility of extraction of less resin, it is the case of the
appellant/nonclaimant that marking of 6000 new trees
was not in the agreement dated 13.04.2006. On that
score, the award is stated to be bad in the eyes of law.
According to her, as per climate condition, rebate of 50%
should have been given to the nonclaimant.
11. On the basis of above facts, Sh. Lokesh Thakur,
Advocate, vice Mr. G.R. Palsra, Advocate, for the appellant/
nonclaimant, has prayed that the judgment passed by the
learned District Judge and the award passed by the
Arbitrator may kindly be set aside.
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12. Per contra, Mr. D.S. Kainthla, Advocate,
High Court of H.P.
appearing for the respondent, has pointed out that the
Arbitrator has passed the award, on the basis of the
contentions, so raised and the learned District Judge, has
rightly dismissed the objections, filed by the nonclaimant
and this Court under Section 37 of the Act, cannot re
appreciate those findings.
13. The nonclaimant is before this Court, under
Section 37 of the Act. It is no longer resintegra that the
scope of the Appellate Court, exercising jurisdiction under
Section 37 of the Act, to review the findings is limited, if
the award has been upheld under Section 34 of the Act.
While holding so, the view of this Court is being guided by
the decision of Hon’ble Supreme Court in Konkan Railway
Corporation Ltd. Vs. Chenab Bridge Project
Undertaking, 2023 (9) SCC 85 . Relevant paras 19 & 25,
of the judgment, is reproduced, as under:
“ 19. Therefore, the scope of jurisdiction under Section 34
and Section 37 of the Act is not akin to normal appellate
jurisdiction. It is wellsettled that courts ought not to
interfere with the arbitral award in a casual and cavalier
manner. The mere possibility of an alternative view on
facts or interpretation of the contract does not entitle
courts to reverse the findings of the Arbitral Tribunal. In
Dyna Technologies Private Limited v. Crompton Greaves
Limited (2019) 20 SCC 1, this Court held:
“24. There is no dispute that Section 34 of the
Arbitration Act limits a challenge to an award only
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on the grounds provided therein or as interpreted
by various courts. We need to be cognizant of the
fact that arbitral awards should not be interfered
with in a casual and cavalier manner, unless the
court comes to a conclusion that the perversity of
the award goes to the root of the matter without
there being a possibility of alternative
interpretation which may sustain the arbitral
award. Section 34 is different in its approach and
cannot be equated with a normal appellate
jurisdiction. The mandate under Section 34 is to
respect the finality of the arbitral award and the
party autonomy to get their dispute adjudicated by
an alternative forum as provided under the law. If
the courts were to interfere with the arbitral award
in the usual course on factual aspects, then the
commercial wisdom behind opting for alternate
dispute resolution would stand frustrated.
25. Moreover, umpteen number of judgments of
this Court have categorically held that the courts
should not interfere with an award merely because
an alternative view on facts and interpretation of
contract exists. The courts need to be cautious and
should defer to the view taken by the Arbitral
Tribunal even if the reasoning provided in the
award is implied unless such award portrays
perversity unpardonable under Section 34 of the
Arbitration Act.”
High Court of H.P.
xxxx xxxx xxxx
25. The principle of interpretation of contracts
adopted by the Division Bench of the High Court that
when two constructions are possible, then courts must
prefer the one which gives effect and voice to all clauses,
does not have absolute application. The said
interpretation is subject to the jurisdiction which a court
is called upon to exercise. While exercising jurisdiction
under Section 37 of the Act, the Court is concerned
about the jurisdiction that the Section 34 Court
exercised while considering the challenge to the Arbitral
Award. The jurisdiction under Section 34 of the Act is
exercised only to see if the Arbitral Tribunal’s view is
perverse or manifestly arbitrary. Accordingly, the
question of reinterpreting the contract on an alternative
view does not arise. If this is the principle applicable to
exercise of jurisdiction under Section 34 of the Act, a
Division Bench exercising jurisdiction under Section 37
of the Act cannot reverse an Award, much less the
decision of a Single Judge, on the ground that they have
not given effect and voice to all clauses of the contract.
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This is where the Division Bench of the High Court
committed an error, in reinterpreting a contractual
clause while exercising jurisdiction under Section 37 of
the Act. In any event, the decision in Radha Sundar
Dutta (supra), relied on by the High Court was decided
in 1959, and it pertains to proceedings arising under the
Village Chaukidari Act, 1870 and Bengal Patni Taluks
Regulation of 1819. Reliance on this judgment
particularly for interfering with the concurrent
interpretations of the contractual clause by the Arbitral
Tribunal and Single Judge under Section 34 of the Act is
not justified.”
High Court of H.P.
14. In a recent decision in
Bombay Slum
Redevelopment Corporation Pvt. Ltd. Vs. Samir Barain
, the Hon’ble Supreme Court
Bhojwani, (2024) 7 SCC 218
has again reiterated that supervisory role of the Courts is
very restricted in dealing with appeals under Section 37 of
the Act. The scope of interference in a petition under
Section 34 of the Act is very narrow, and whereas,
jurisdiction under Section 37 of the Act is narrower.
Relevant para 26 of the judgment, is reproduced, as
under:
“ 26. The jurisdiction of the appellate court dealing with
an appeal under Section 37 against the judgment in a
petition under Section 34 is more constrained than the
jurisdiction of the Court dealing with a petition under
Section 34. It is the duty of the appellate court to consider
whether Section 34 Court has remained confined to the
grounds of challenge that are available in a petition under
Section 34. The ultimate function of the appellate court
under Section 37 is to decide whether the jurisdiction
under Section 34 has been exercised rightly or wrongly.
While doing so, the appellate court can exercise the same
power and jurisdiction that Section 34 Court possesses
with the same constraints.”
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15. Being guided by the above decisions, now this
High Court of H.P.
Court would proceed further with the contentions so raised
by the nonclaimant, before this Court.
16. The nonclaimant, in her affidavit, has taken a
plea that after the award of the work, when the labourers
were deputed in the forest and the work was duly started,
as per the terms and conditions of the agreement, then, it
was found that most of the trees were in dilapidated
conditions and dried & diseased trees. The matter was
reported to the claimant well within time, whereas, in the
present appeal, she has taken plea that on the spot, there
were 6000 trees, which were new trees and according to
her, being new trees there was possibility of extraction of
less resin. Meaning thereby, whatsoever, stand taken in
the appeal is not taken before the learned Arbitrator. The
learned Arbitrator has considered all the contentions, while
deciding issue No. 4 and while exercising the power under
Section 37 of the Act, this Court cannot reappreciate the
evidence/findings like an appellate Court.
17. Learned counsel appearing for the non
claimant, could not point out any patent illegality in the
award passed by the learned Arbitrator. As such, there is
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no occasion for this Court to differ with the findings, so
High Court of H.P.
recorded by the learned District Judge, while considering
the appeal under Section 34 of the Act.
18. Consequently, the present appeal is dismissed.
19. Record be sent back.
(Virender Singh)
st
31 August, 2026 Judge
( Pramod Kumar )
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