Supreme Court To Examine If Arbitral Tribunals Can Override Institutional Rules

The Supreme Court will examine whether arbitral tribunals seated in India can bypass institutional rules agreed by parties under the guise of “equity” and “interest of justice.”

The dispute arose when a tribunal condoned an 84-day delay by Doosan Power in filing its defence, despite Rule 18(a) of the Indian Council of Arbitration Rules prescribing a strict 60-day cap.

The Delhi HC upheld the tribunal’s order, ruling that rules “guide and not bind.” Aneja argues this violates Section 2(8) of the Arbitration and Conciliation Act, 1996, which incorporates chosen institutional rules into the arbitration agreement, undermining party autonomy, which is the bedrock of arbitration.

 [Aneja Constructions v Doosan Power]