Parties May Raise All Factual and Legal Grounds Before the Duly Appointed Arbitrator

The Appellant, a government-undertaking company, filed a Writ Appeal to set aside the order passed by a Single Judge of the Madras High Court in W.P. No. 16569 of 2021 dated 24.09.2021

The dispute involves M/s. Enviro Service Pvt Ltd (Respondent No. 1) and refers to proceedings involving the Micro and Small Enterprises (M) Facilitation Council

During the pendency of this appeal, the parties informed the Court that an Arbitrator had already been appointed pursuant to the directions issued by the Writ Court in the impugned order

1. Whether the Writ Appeal should be entertained given that an Arbitrator has already been appointed to resolve the underlying dispute

2. Whether the parties should be permitted to raise all factual and legal grounds, including those raised in the present appeal, before the appointed Arbitrator

The Court applied the principle of judicial non-interference in ongoing arbitration proceedings where an alternative remedy of adjudication has already been activated.

It relied on the doctrine that when a competent tribunal (the Arbitrator) is seized of a matter pursuant to a Court direction, parties must exhaust that remedy by presenting all factual and legal arguments before said tribunal

The Division Bench observed that the primary objective of the litigation—the initiation of a dispute resolution mechanism—had been achieved through the appointment of an Arbitrator by the Writ Court

The Court reasoned that since the Arbitrator is tasked with considering the issues and passing an Award, it is unnecessary for the High Court to adjudicate the merits of the appeal at this stage

To ensure equity, the Court emphasized that all parties must be afforded a full opportunity to present their case, clarifying that the grounds of the present appeal are not forfeited but may be pleaded directly before the Arbitrator for consideration

It directed that all factual and legal grounds raised in this appeal may be raised before the Arbitrator, who is to consider them in the final Award. No costs were awarded, and the connected Miscellaneous Petition was closed