Delhi High Court Reaffirms: Arbitrator Cannot Rewrite Repayment Framework Agreed by Parties

The Delhi High Court set aside an arbitral award, holding that an arbitrator cannot alter contractual terms by linking repayment obligations to commercial success when the agreement provides otherwise.

The Court ruled that once the Advisory and Monitoring Committee certified successful technology development, repayment was triggered as per the contract.

By introducing a condition of commercial viability, the arbitrator exceeded jurisdiction and rewrote the contract, attracting the ground of patent illegality under Section 34 of the Arbitration and Conciliation Act.

[Technology Information Forecasting and Assessment Council v. Strategic Engineering Pvt. Ltd. & Anr.]