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Union of India vs. M/s Satish Builder and connected matters

Original Miscellaneous Petition (Commercial) · CNR No. DLHC010517022019Decided 21 Sept 2026New Delhi Bench
O.M.P. (COMM) 38/2020, O.M.P. (COMM) 372/2020CNR: DLHC010517022019
Justice Om Prakash Shukla

Background

This case and its connected matter (Case No. 156) were cross-petitions filed by the Union of India and a private construction firm, M/s Satish Builders, each challenging different aspects of the same underlying arbitral award between them.

Decision Breakdown

Both parties agreed before the Court that certain claims in the arbitral award had been decided without adequate reasoning (or no reasoning at all). Rather than the Court itself deciding the challenge on merits, both sides consented to have the matter sent back to the same Arbitrator under Section 34(4) of the Arbitration and Conciliation Act, 1996: a provision that lets courts give an arbitrator a chance to fill gaps in reasoning rather than throwing out the award entirely. The Court accordingly remanded both petitions to the Arbitrator and directed that the arbitral record be sent back.

Lesson Learnt

When an arbitral award lacks adequate reasoning on some points, courts have an alternative to outright setting aside the award, sending it back to the same arbitrator to supply reasons, which can save both parties the time and cost of a fresh arbitration.

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