Madhya Pradesh High Court

Appellate Court cannot reappraise evidence or substitute its view under Section 37 of the Arbitration Act.

M/S Mahasweta Roy Choudhary And Co. vs National Water Development Agency

Madhya Pradesh High CourtJUDGMENT: July 10, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellant entered into a drilling contract with the respondent on 13/08/2008 for work at Makodia, Barrari, and Kesari Barrages

Source reference: para 2

The appellant contended that under the contract, payments for drilling in hard rock should include the preceding drilling through overburden/intermediate strata from ground level

Source reference: para 5, 7

Claiming non-payment for 200 meters of overburden drilling, the appellant invoked arbitration

Source reference: para 6, 8, 10

The Sole Arbitrator dismissed the claim on 24/06/2013

Source reference: para 11, 14

The appellant challenged this under Section 34 of the Arbitration and Conciliation Act, 1996, before the X Additional District Judge, Bhopal, who dismissed the application on 30/09/2015

Source reference: para 1, 15

The appellant then preferred this appeal under Section 37 of the Act

Source reference: para 1
02

Issues

1. Whether the scope of interference by an appellate court under Section 37 of the Act allows for the reappreciation of evidence or merits of the arbitral award

Source reference: para 19

2. Whether the findings of the Arbitrator and the Section 34 Court suffered from patent illegality or perversity warranting judicial intervention

Source reference: para 20, 26
03

Law Applied

The court applied Section 37 and Section 34 of the Arbitration and Conciliation Act, 1996, which restrict judicial review to specific grounds like fraud, bias, or violation of natural justice, while prohibiting the correction of errors or reappraisal of evidence

Source reference: para 19, 21

The minimum supervisory role of courts as established in McDermott International Inc vs Burn Standard Co. Ltd (2006)

Source reference: para 21

The caution required in disturbing concurrent findings as established in MMTC Limited vs. Vedanta Limited (2019)

Source reference: para 22

Finality of an arbitrator's view if it is "reasonable" as per Bharat Coking Coal Ltd. Vs. L.K. Ahuja (2001)

Source reference: para 23

Respect for party autonomy and the finality of awards as per Dyna Technology Pvt. Ltd. v. Crompton Greaves Ltd. (2019)

Source reference: para 24
04

Reasoning

The Court observed that its jurisdiction under Section 37 is extremely limited and cannot be equated with a normal appellate jurisdiction over factual merits

Source reference: para 19, 24

In applying the precedent from Punjab State Civil Supplies Corporation Ltd. v. Sanman Rice Mills (2024), the Court noted that Section 37 is "summary in nature" and strictly tethered to the domains of Section 34

Source reference: para 25

The Court found that the appellant failed to demonstrate any perversity, irregularity, or patent illegality in the lower court's order or the original award

Source reference: para 20

Since the Commercial Court had already bestowed due consideration on all points raised, and because the arbitrator's interpretation of the contract was a possible view, the High Court held it could not substitute its own view for that of the arbitrator

Source reference: para 20, 26
05

Holding

The Court holding that the scope of Section 37 does not permit a fresh adjudication of disputes or a reappraisal of evidence

The Court affirmed that the impugned orders were in consonance with the scheme of the 1996 Act and did not violate public policy. The appeal was dismissed, and the concurrent findings of the Arbitrator and the Section 34 Court were upheld

Source reference: para 26, 27
Madhya Pradesh High Court

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M/S Mahasweta Roy Choudhary And Co.vsNational Water Development Agency

Madhya Pradesh High Court · July 10, 2026

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