
Courts Must Refrain From Interim Orders Once Arbitral Tribunal Is Constituted Unless Urgency Demands: Delhi High Court
Live LawThe Delhi High Court bench of Justice C. Hari Shankar has held that once an Arbitral Tribunal is in place, ordinarily a court should refrain from dealing with the matter even for the purposes of passing interlocutory orders unless the order is demonstrably one which cannot await the application of mind by the Arbitral Tribunal. If party is able to convince the Court that by the time the application is taken up by the Arbitral Tribunal, the prejudice that may result would be irreparable, it may be justified for the Court to take up the matter even when the Arbitral Tribunal is in seisin of the disputes.” Brief Facts: The matter pertained to a dispute which arose from a Construction, Procurement of Materials, and Equipment Contract between Welspun Enterprises Ltd and Kasthuri Infra Projects Pvt Ltd. The High Court referred to the decision of the Supreme Court in Arcelor Mittal Nippon Steel India Ltd v. Essar Bulk Terminal Ltd LL 2021 SC 454, where it was held that the Court would not entertain an application for interim measures once the Arbitral Tribunal is constituted unless the remedy under Section 17 is inefficacious. The High Court held that the situation did not justify parallel adjudication by the Court and that interim relief considerations should be left to the Arbitral Tribunal to avoid influencing the Tribunal's proceedings.
History of this topic

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