Article 227 supervision over arbitral termination orders permits limited directions to decide recall applications where jurisdiction was not exercised

Article 227 supervisory jurisdiction is not excluded by the Arbitration and Conciliation Act, 1996, but it must be used sparingly and only in exceptional cases. An arbitral tribunal that has terminated proceedings for non-filing of a statement of claim may recall that termination on sufficient cause being shown and permit the claim to be filed. Where the grievance is that the tribunal has not decided recall applications at all, the complaint is failure to exercise jurisdiction rather than an attempt to stall arbitration. On the stated facts, the petitions were maintainable only to seek a decision on the recall applications, and the matter was remitted for a reasoned hearing and determination.

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Issues: Whether petitions under Article 227 were maintainable against orders terminating arbitral proceedings under Section 25(a) of the Arbitration and Conciliation Act, 1996, and whether the Arbitrator was required to consider the Union's applications for recall of those termination orders.

Analysis: The supervisory jurisdiction under Article 227 is not excluded by the Arbitration and Conciliation Act, 1996, but it is to be exercised sparingly and in exceptional circumstances. An arbitral tribunal that terminates proceedings for non-filing of a statement of claim may, on sufficient cause being shown, recall such termination and permit the claim to be filed. Where the grievance is that the tribunal has failed to pass any order on recall applications, the complaint is of failure to exercise jurisdiction rather than an attempt to interdict the arbitral process. The facts also showed that the last hearing date fixed by the Arbitrator was not held and no show-cause opportunity preceded the impugned termination orders.

Conclusion: The petitions were maintainable to the limited extent of seeking a direction to the Arbitrator to decide the recall applications, and the Arbitrator was required to consider those applications after hearing the parties.

Final Conclusion: The termination orders were not finally sustained in these proceedings, and the matter was sent back to the Arbitrator for a reasoned decision on recall within the stipulated time.

Ratio Decidendi: An arbitral tribunal may recall an order terminating proceedings under Section 25(a) of the Arbitration and Conciliation Act, 1996 upon sufficient cause being shown, and the High Court may in a narrow and exceptional case exercise Article 227 jurisdiction to require the tribunal to decide such recall applications where it has failed to do so.

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