A Party Cannot Contest An Arbitral Award For Exceeding The Reference Scope If It Failed To Object When The Alleged Breach Initially Occurred: Delhi High Court

The High Court of Delhi has held that a party cannot challenge an arbitral award on the ground that the tribunal went beyond the scope of reference when it admittedly did not raise any objection when the alleged breach was first committed by the tribunal. The Court held that supplies made prior to the date of the agreement would be governed by the arbitration clause in the agreement if the parties made verbal and written modifications to the agreement to include those supplies to settle their running accounts. The Court held that a party cannot challenge an arbitral award on the ground that the tribunal went beyond the scope of reference when it admittedly did not raise any objection when the alleged breach was first committed by the tribunal. The Court held that the tribunal’s decision to include certain invoices in the claim cannot be challenged under Section 34 as being beyond the reference to arbitration when no such objection was raised before the arbitral tribunal.