Supreme Court: Arbitral Tribunal lacks appellate power over Section 9 orders

The case concerns a dispute between the Union of India and Hariom Projects Pvt. Ltd. regarding whether a High Court can remit an appeal under Section 37 of the Arbitration Act to an Arbitral Tribunal to be treated as an application under Section 17. The Supreme Court clarified that an Arbitral Tribunal does not exercise appellate jurisdiction over orders passed by a Court under Section 9.

Who it concerns: Petitioner: Union of India & Ors.; Respondent: Hariom Projects Pvt. Ltd.; Bench: Hon'ble Mr. Justice Aravind Kumar and Hon'ble Mr. Justice Prasanna B. Varale.

What the court decided

• The impugned order of the High Court dated 13-01-2026 is set aside to the limited extent that it remits proceedings under Section 37 to the Arbitral Tribunal and directs them to be treated as an application under Section 17.
• The Court held that the Arbitral Tribunal cannot exercise appellate jurisdiction over Section 9 orders, even by consent of the parties.
• The Court noted that the Tribunal is seized of the matter and the parties have entered into a Supplementary Agreement dated 24-04-2026.
• All other issues relating to the disputes between the parties are to be adjudicated by the Tribunal.
• The appeal is disposed of with the above modification.
• Pending applications, if any, are consigned to record.

Also in the document

• The Court clarified that the powers of an appellate Court under Section 37 are distinct from the powers of an Arbitral Tribunal under Section 17 and cannot be interchanged by remitting proceedings.
• The Court noted that the specific prayer to restrain termination of the contract had become spent due to the termination on 03-01-2026, and any further protection must be considered in light of subsequent events.
• The order is marked as 'Reportable' and '2026 INSC 1044'.