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High Court can interfere with arbitral orders only cases of exceptional rarity or of any patent lack of inherent jurisdiction

In NAVAYUGA ENGINEERING COMPANY vs BANGALORE METRO RAIL CORPORATION LIMITED, writ filed by the Respondent before the High Court against order of the arbitrator was allowed by the HC which changed the order.

On appeal the Supreme Court categorically stated that despite this Court repeatedly referring to Section 5 of the Arbitration Act in particular and the Arbitration Act in general and despite this Court having laid down in Deep Industries Ltd. Vs. ONGC & Anr. (2020) 15 SCC 706 that the High Court under Article 226 and 227 should be extremely circumspect in interfering with orders passed under the Arbitration Act, such interference being only in cases of exceptional rarity or cases which are stated to be patently lacking in inherent jurisdiction, we find that High Courts are interfering with deposit orders that have been made. This is not a case of exceptional rarity or of any patent lack of inherent jurisdiction.

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