Case Analysis: Associate Builders V. Delhi Development Authority
- IJLLR Journal
- Jun 1
- 1 min read
Vrinda Bhardwaj, O.P. Jindal Global University
ABSTRACT
This case note examines the Supreme Court's seminal decision in Associate Builders v. Delhi Development Authority, which influenced judicial intervention in arbitration under Section 34 of the Arbitration and Conciliation Act, 1996. The arbitrator awarded Associate Builders compensation, citing construction delays as the cause of the dispute. The award was upheld by one judge, but it was overturned by the division bench, which prompted an appeal to the Supreme Court.
According to Justice R.F. Nariman, arbitral awards can only be overturned on three grounds: patent illegality, moral and ethical principles, or violation of fundamental policy. The Court agreed with the arbitral award granted initially and emphasised that judicial intervention should be decreased. The ruling achieved a balance between arbitral finality and judicial oversight. The decision influenced later statutory amendments as well and takes a pro- arbitration stance in Indian jurisprudence.
