CAT - Delhi

Administrative Tribunals lack jurisdiction to set aside arbitral awards as they are not Principal Civil Courts.

Fedration Of Indian Pharmacists vs M/o Health And Family Welfare

CAT - DelhiJUDGMENT: March 12, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicants, representing Pharmacists, sought pay scale upgradation from Rs. 4500-7000 to Rs. 5000-8000 effective from 01.01.1996

Source reference: para. 1

Following a disagreement in the National Anomaly Committee, the matter was referred to a Sole Arbitrator by the Tribunal via an order dated 13.03.2003, based on an agreed settlement mechanism

Source reference: para. 2.3

The Arbitrator issued an award on 13.03.2004 denying the upgradation

Source reference: para. 2.5

The applicants initially challenged this award before the Delhi High Court in W.P. 21248/2005, which was withdrawn on 18.10.2016 with liberty to pursue remedies before the appropriate forum after the High Court orally questioned the maintainability of a writ against an arbitral award when the Tribunal holds jurisdiction over service matters

Source reference: para. 2.7

Consequently, the applicants filed the present Original Application (O.A.) under Section 19 of the Administrative Tribunals Act, 1985, to quash the award and grant the upgraded pay scales

Source reference: para. 1
02

Issues

1. Whether an "arbitral award" qualifies as an "order" as defined under the Explanation to Section 19 of the Administrative Tribunals Act, 1985

Source reference: para. 6.1.1 / 6.18

2. Whether the Central Administrative Tribunal (CAT) constitutes a "Principal Civil Court of original jurisdiction" under Section 2(1)(e)(i) of the Arbitration and Conciliation Act, 1996, competent to set aside an arbitral award

Source reference: para. 6.1.2 / 6.19

3. Whether an application under Section 19 of the Administrative Tribunals Act, 1985, is analogous to an application under Section 34 of the Arbitration and Conciliation Act, 1996

Source reference: para. 6.1.3 / 6.21
03

Law Applied

Section 19 of the Administrative Tribunals Act, 1985, which limits the Tribunal's jurisdiction to "orders" made by the Government or specific authorities

Source reference: para. 6.14, 6.18

Section 2(1)(e)(i) of the Arbitration and Conciliation Act, 1996, which exhaustively defines "Court" as the Principal Civil Court of original jurisdiction in a district or a High Court with ordinary original civil jurisdiction

Source reference: para. 6.9

The court relied on the Supreme Court's ruling in State of West Bengal v. Associated Contractors, which held that no court other than those specified in Section 2(1)(e) can entertain matters under Part I of the 1996 Act

Source reference: para. 6.11

L. Chandra Kumar v. Union of India, emphasizing that while Tribunals are courts of first instance for service matters, they remain creatures of statute and cannot assume jurisdiction outside their parent Act

Source reference: para. 6.17
04

Reasoning

The Tribunal reasoned that for an O.A. to be maintainable under Section 19 of the 1985 Act, the grievance must stem from an "order" issued by a government body or officer.

Source reference: para. 6.18

An "arbitral award" does not fall within the statutory explanation of an "order" under Section 19

Source reference: para. 6.18

The Tribunal observed that the Arbitration and Conciliation Act, 1996, is a special statute providing a specific, exclusive remedy under Section 34 for setting aside awards

Source reference: para. 6.15, 6.19

Although the Tribunal exercises powers of a "court" in service matters, it does not satisfy the definition of a "Principal Civil Court" as required by Section 2(1)(e) of the 1996 Act

Source reference: para. 6.19

The Bench concluded that even if the Arbitrator was appointed following a Tribunal order and a concession by the respondents, such a concession cannot confer "defective jurisdiction" upon the Tribunal to override the statutory mandate of Section 34 of the 1996 Act

Source reference: para. 6.19

Therefore, the mechanism for challenging an arbitral award remains distinct from the resolution of service grievances under the 1985 Act

Source reference: para. 6.21
05

Holding

The Tribunal answered all legal questions in the negative, holding that it lacks the jurisdiction to set aside an arbitral award under the Administrative Tribunals Act, 1985

The 1996 Act provides the overriding statutory framework for such challenges

Source reference: para. 6.19

Consequently, the Original Application was dismissed for lack of jurisdiction

Source reference: para. 7.1

Pending M.A.s were disposed of, and no costs were awarded

Source reference: para. 7.2
CAT - Delhi

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Fedration Of Indian PharmacistsvsM/o Health And Family Welfare

CAT - Delhi · March 12, 2026

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