Noble Chartering Inc. v. Steel Authority of India Ltd.
Case brief
What is this about?
The Supreme Court held that an Arbitral Tribunal's interpretation of contract clauses cannot be interfered with under the public policy exception unless it is not a possible construction, even if erroneous. The Court clarified that mere perversity or irrationality does not violate public policy. Furthermore, the Single Judge lacked jurisdiction to modify the award regarding interest rates, as such modifications are impermissible under Section 34 proceedings. The appeal by the appellant (Noble) was allowed, reinstating the award, while the respondent's (SAIL) appeal was dismissed.
What did the court decide?
Allow the appeal by the appellant (Noble) and set aside the impugned Single Judge order. Dismiss the appeal by the respondent (SAIL). Direct parties to bear their own costs.