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Arbitration - Writ Petition Can Be Entertained Only If There Is Patent Lack Of Inherent Jurisdiction In Arbitrator's Order

 In PUNJAB STATE POWER CORPORATION LIMITED vs EMTA COAL LIMITED & ANR, while dismissing the appeal against order of the High Court observed the Supreme Court has clearly held in Deep Industries Ltd. v. Oil and Natural Gas Corporation Ltd. & Anr. (2019), that an appeal under Articles  226/227  of the Constitution from a section 16 application being dismissed by the Arbitrator can only be if the order passed is so perverse that the only possible conclusion is that there is a patent lack in inherent jurisdiction. A patent lack of inherent jurisdiction requires no argument whatsoever – it must be the perversity of the order that must stare one in the face.

Ordering a cost of Rs. 50000/- to be paid by the petitioner, the Supreme Court also observed that the High Court had dismissed the writ application on the grounds of delay when the application should have been dismissed with heavy cost as there is no perversity in the order which leads to a patent lack of inherent jurisdiction.

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