Case Law Analysis: Project Director, NHAI V. M. Hakeem (2021)
- IJLLR Journal
- Apr 11
- 2 min read
Mukeshwaran. S, VIT School of Law, VIT Chennai
Nitin. P, VIT School of Law, VIT Chennai
Dr. Saji Sivan S, Assistant Professor, VIT School of Law, VIT Chennai
ABSTRACT
The decision Project Director, NHAI vs., M. Hakeem (2021) is a landmark pronouncement made by the Supreme Court of India so as to expound the extent of judicial intervention allowed under the Arbitration and Conciliation Act, 1996. The dispute had its origins in land acquisition proceedings implemented by the National Highways Authority of India in view of the development and expansion of the national highway network. Property owners that had their land nationalized did not agree with the damages awarded by the competent authority and sought improved remuneration through the process of arbitration. Subsequently, the arbitral awards were modified by district courts with the statutory option contained in Section 34 of the Arbitration and Conciliation Act. This raised a dramatic legal question as to whether courts can alter arbitral awards or whether their authority is limited to the setting aside of such awards. The legislative framework of the Arbitration and Conciliation Act, the principle of minimum judicial intervention in arbitration and the doctrines supporting the arbitral autonomy were examined by the Supreme Court. It was noted that Section 34 largely gives the courts only a limited supervisory role over the arbitral awards where they do not have the authority to amend or change the substantive merits thereof. Accordingly, the Court held that the judicial authorities can only set aside an arbitral award on the grounds specified in the statute and are barred from making their own determinations instead of the tribunal of arbitrators decision. This judgment reiterates the dispensation of finality of arbitral awards and strengthens India's pro-arbitration legal framework by restraining over-abundance of judicial intrusion. It is a very important precedent in the domain of Indian arbitration jurisprudence, which provides clarity on the nature of the courts when reviewing arbitral awards and the independence and authority granted to arbitral tribunal.
