Indraprastha Power Generation Co. Ltd. v. EM Services (I) Pvt. Ltd.
Court – Delhi High Court
Citation – O.M.P 717/2010
Date – 13.08.2025
The Hon’ble Delhi Court has held that an Arbitral award refusing to frame an issue for the counter claim is patently illegal and would be against the fundamental policy of Indian Law.
The Court held,
“41. Once there is counter claim of the petitioner in its pleading and the petitioner has spelt out the reasons as well as has given basis for arriving at a figure of counter-claim and moreover, the respondent in its rejoinder has denied the claim of the petitioner, it was incumbent upon the learned Sole Arbitrator to frame an issue in this regard. The order dated 13.02.2009 is erroneous to the extent as the learned Sole Arbitrator in the said hearing ought to have framed an issue with regard to the counter claim of the petitioner. Every disputed fact/claim made by a party and rebutted by the opposing party is an issue in itself which need to be framed for adjudication.
48. I am unable to agree as regards this argument. Parties are required to lead evidence on the questions which have been framed for determination by the learned Sole Arbitrator. Once the counter-claim was not an issue before the learned Sole Arbitrator, the petitioner could not be expected to lead evidence on the same and obviously there would be no evidence before the learned Sole Arbitrator in support of its counter claim.
50. For the foregoing reasons, the Arbitral Award dated 18.06.2010 is in conflict with the fundamental policy of Indian Law. In addition, the said Award suffers from violation of most basic notions of justice despite specific pleading, no issue of counter claim was framed by the learned Sole Arbitrator. Since there was no issue, the petitioner did not lead any evidence. Hence, the petitioner was clearly deprived of the adjudication of its claim and the same shocks the conscience of the Court. Accordingly, the petition is allowed and the Arbitral Award dated 18.06.2010 is set aside.”
— Team AMLEGALS
Please reach out to us at rohit.lalwani@amlegals.com in case of any query.
Navigation
Practice Areas
© 2020-21 AMLEGALS A Corporate Law Firm in India for IBC, GST, Arbitration, Data Protection, Contract, Due Diligence, Corporate Laws, IPR, White Collar Crime, Litigation & Startup Advisory, Legal Advisory.
