National Aluminium Company Ltd. & Ors. Vs Maheswari Brothers Coal Ltd. (Supreme Court of India)
Summary: The Supreme Court disposed of the petition filed by National Aluminium Company Ltd. and others against Maheswari Brothers Coal Ltd., granting liberty to the petitioners to approach the High Court under Articles 226 and 227 of the Constitution of India to challenge the impugned orders. Relying on the principles laid down in Deep Industries Ltd. v. ONGC, the Court recognised that the petitioners could invoke the High Court’s constitutional jurisdiction in relation to the challenged arbitration orders. The Supreme Court did not adjudicate the merits of those orders but permitted the petitioners to pursue the appropriate constitutional remedy.
The Court further clarified that if the High Court passed adverse orders in the proposed proceedings, the petitioners would remain entitled to challenge those orders before the Supreme Court in accordance with law. To facilitate their approach to the High Court and enable them to seek appropriate interim protection, the Supreme Court continued the interim relief originally granted on 20 December 2024 for six weeks from the date of its present order, on the same terms. However, it expressly directed that the High Court must independently decide any application for interim relief without being influenced by the continuation of the Supreme Court’s interim order. The petition was accordingly disposed of, along with all pending applications.
Cases Discussed
Deep Industries Ltd. v. Oil and Natural Gas Corporation Ltd. (Supreme Court; (2020) 15 SCC 706): The Supreme Court relied on this decision while granting liberty to the petitioners to invoke the High Court’s jurisdiction under Articles 226 and 227 of the Constitution. The precedent recognises the availability of constitutional supervisory jurisdiction in arbitration matters, subject to the restrictive principles governing judicial interference. The present order leaves the High Court to consider the challenge in accordance with law.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Delay condoned.
In view of the law laid down by this Court in the case of Deep Industries Ltd. vs. ONGC1, it will be open for the petitioners to invoke jurisdiction of the High Court under Article 226/227 of the Constitution of India for challenging the impugned orders.
We, therefore, dispose of the petition by granting liberty to the petitioners to file proceedings as aforesaid.
It is needless to add that in the event adverse orders are passed in the petition which may be filed by the petitioners under Article 226/227 of the Constitution of India, it will be open for the petitioners to challenge the said orders before this Court in accordance with law.
To enable the petitioners to move the High Court for appropriate interim relief, the interim relief granted by this Court on 20th December, 2024 will continue to operate on the same terms for a period six weeks from today. However, we make it clear that the High Court shall decide the prayer for interim relief without being influenced by the continuation of the aforesaid interim order of this Court.
Pending application(s), if any, shall stand disposed of.
