Sanjay Gandhi Post Graduate Institute of Medical Science Vs Trishul Enterprises (Allahabad High Court)
The Allahabad High Court partly allowed an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 against the Commercial Court No.1, Lucknow judgment dated 29.11.2023, which had dismissed a Section 34 challenge and upheld the Sole Arbitrator’s award dated 20.08.2020. The dispute arose from an agreement dated 16.04.2008 for landscape maintenance at Sanjay Gandhi Post Graduate Institute of Medical Sciences. The appellant challenged, among other matters, the award of Rs.6,12,000/- as security refund and Rs.6,17,629/- towards Employee Provident Fund reimbursement.
The High Court found that two separate contracts existed between the parties. Contract No.1 of 2007-2008 involved security of Rs.3,35,000/-, which had already been released, whereas Rs.6,12,000/- related to subsequent Contract No.107 of 2013-2014. The Court noted that the arbitration reference arose from Contract No.1 of 2007-2008 and that the subsequent contract had neither been referred to arbitration nor made part of the pleadings or evidence. Accordingly, the Arbitrator had exceeded the scope of the reference by allowing the Rs.6,12,000/- security claim and the associated Rs.9,456/- bill. The Court relied on the principle that an Arbitrator is a creature of the contract and cannot adjudicate disputes beyond the contractual reference.
