Karnataka HC: Arbitral Tribunals have procedural autonomy, minimal judicial interference warranted

The Karnataka High Court's Division Bench of Judges Tara Vitasta Ganju and Jayant Banerji dismissed a writ petition challenging an Arbitral Tribunal's decision to recall an earlier order and reopen evidence. The Court held that arbitral tribunals possess substantial procedural autonomy under Section 19 of the Arbitration and Conciliation Act, 1996, and that high courts' supervisory jurisdiction should ordinarily not be used to correct interlocutory procedural orders unless there is a patent jurisdictional defect or exceptional perversity.

The case arose from arbitration proceedings initiated by Everonn Education Ltd., then in provisional liquidation, against the State of Karnataka and two other respondents over an alleged illegal termination of an Information and Communication Technologies Phase III Project contract. Everonn claimed approximately ₹732.82 crores in damages along with interest and costs. The arbitral tribunal had ruled that one respondent lacked the right to cross-examine a witness because its representative had already been examined on behalf of another party.