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M. K. Construction vs. Maj. Gen. Hoshiar Singh (Retd) and Anr.

First Appeal from Order (Commercial) · 2026:DHC:8494-DBDecided 30 Sept 2026New Delhi Bench
FAO (COMM) 86/2023CNR: DLHC010123892023
Justice Avneesh Jhingan · Justice Shail Jain

Background

A building contractor appealed a decision upholding an arbitral award (passed after an earlier award was set aside and the matter sent back for a fresh local inspection) relating to a residential construction contract, including disputes over damages for delayed possession, adjustment of wood/gate costs, and compensation for mental harassment.

Decision Breakdown

The High Court dismissed the appeal, holding that an appeal under Section 37 has an even narrower scope than a challenge under Section 34: it cannot reopen factual findings or allow new arguments not raised at the earlier stage. The arbitrator's factual finding that certain wood had been supplied by the homeowner (justifying an adjustment against the contractor's bill) was reasonable and not interfered with; arguments about awards exceeding the pleaded claim or about the arbitrator's mandate having lapsed were raised for the first time on appeal and could not be entertained. The appeal was dismissed.

Lesson Learnt

When challenging an arbitral award through the courts, all objections must be raised at the first available stage (the Section 34 challenge): a later appeal cannot be used to introduce new grounds, and courts will not re-examine an arbitrator's reasonable factual findings.

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