Gujarat Power Corporation Limited v. Tata Power Renewable Energy Limited
Court - Gujarat High Court
Citation - R/Special Civil Application No. 6910 of 2025
Date - 11.09.2025
The Hon’ble Gujarat High Court has held that a Writ Court should only interfere with procedural order of arbitral proceedings under rarest of rare circumstances or if the order is completely perverse or passed in bad faith.
The Court held,
“6.2 Apart from the aforesaid judgment, the judgments relied on by Mr. Mihir Thakore, Learned Senior Advocate referred above provide an exhaustive overview of the judicial trend followed in respect of entertaining petitions to interfere with arbitration processes. The catch-words that have been propounded are that the order in question has to be “completely perverse”, order in question has to be marred with “bad faith”, or that the order should be so gross that it can be interfered with in “exceptional” or “rarest of the rare circumstances”.
6.3 Taking note of the law laid down in the judgments cited by either side in respect of entertainability of the petition, I am of the opinion that the impugned order does not pass the litmus test of being either “perverse” or passed in “bad faith” so as to warrant judicial interference of this Court. Apart from the order being a plausible view of the Learned Arbitral Tribunal, the same can by no stretch of imagination be termed as an order that is so “exceptional” or “rare” that it would shock the conscience of a reasonable person.”