Arbitration as a Friend in Theory but a Challenge in Practice, Says Supreme Court

Supreme Court Ruling on Section 11 Orders

The Supreme Court ruled that a High Court has no power to review or recall its own order issued under Section 11 of the Arbitration and Conciliation Act, 1996. Once an arbitrator is appointed under this provision, the order becomes final and cannot be revisited by the same court.

Judicial Observations

A bench led by Justice Sanjiv Khanna made this observation while deciding an appeal that challenged a High Court decision recalling an earlier order appointing an arbitrator. The Court expressed concern about inconsistencies in Section 11 proceedings, noting that arbitration remains “a friend of conferences but a foe in practice.”

Court’s Reasoning

Quoting from the judgment:

“The legislative intent behind Section 11 was to ensure minimal judicial interference in the appointment of arbitrators. Allowing recall or review of such orders would defeat this purpose.”

It clarified that once the appointment process is completed, any issues regarding challenge or bias must be raised before the arbitrator, not the court.

Implications for Arbitration Practice

The decision reinforces the objective of speedy resolution in arbitration and limits judicial intervention. The Supreme Court also emphasized that High Courts should avoid procedural reviews that delay arbitral proceedings or conflict with the principles of the Arbitration Act.

“If a party believes an arbitrator lacks jurisdiction, the Act itself provides a mechanism to challenge it before the tribunal,” the Court explained.

Case Outcome

The Supreme Court set aside the High Court’s recall order and restored the earlier appointment of the arbitrator. This ruling is expected to bring clarity and consistency to arbitration-related matters pending before various High Courts.

Author Summary:
The Supreme Court reaffirmed that High Courts cannot review Section 11 arbitration orders, protecting the integrity and autonomy of the arbitral process.

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Bar and Bench Bar and Bench — 2025-11-29

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