Supreme Court Overturns Patna High Court's Arbitration Verdict: A Case of Judicial Oversight

The Supreme Court of India overturned the Patna High Court's decision to halt arbitration proceedings between Hindustan Construction Company and Bihar Rajya Pul Nirman Nigam Limited. The apex court criticized the high court's reversal, emphasizing the need for consistent judicial orders and the importance of arbitration's flexibility and fairness.

The Supreme Court of India has reversed a decision by the Patna High Court that had halted arbitration proceedings between the Hindustan Construction Company Limited (HCC) and the Bihar Rajya Pul Nirman Nigam Limited (BRPNNL). The top court excoriated the high court for undermining judicial order sanctity and arbitrator independence.

In a ruling authored by Justice Mahadevan, the bench noted that the high court had appointed the arbitrator in 2021, facilitating over 70 hearings with the participation of both parties. However, its later decision to annul arbitration proceedings was deemed inconsistent and damaging to judicial integrity.

The case stemmed from a dispute over a contract involving a bridge construction over the Sone river in Bihar. Initially, the high court had appointed former judge Shivaji Pandey as arbitrator after previous arbitration had resolved other claims. BRPNNL's subsequent challenge led to the Supreme Court's intervention, affirming the arbitral process's role in addressing commercial disputes.

(With inputs from agencies.)