Court Upheld Interim Award, Emphasizing Limited Interference. Appellant's Admissions Key.

The court upheld the interim award based on the appellant's admissions in Form B, emphasizing limited interference under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996. The court dismissed the appeal, recognizing the Arbitrator's jurisdiction to pass interim awards and clarifying that set-off amounts can be considered independently of counter-claims. The court deemed pending applications as infructuous.

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Issues Involved:
1. Validity of the interim award based on admissions in Form B.
2. Applicability of Section 14 of the Insolvency and Bankruptcy Code, 2016.
3. Scope of interference under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996.
4. Jurisdiction and powers of the Arbitrator under Section 31(6) of the Arbitration and Conciliation Act, 1996.
5. Consideration of counter-claims and set-offs in arbitral proceedings.

Detailed Analysis:

1. Validity of the Interim Award Based on Admissions in Form B:
The appellant contested the interim award, arguing that the admissions made in Form B before the IRP should not be considered unequivocal admissions for the purpose of an interim award. The court clarified that a set-off is an admitted amount that can be adjusted against the claim, and the appellant's admission in Form B was a categorical admission requiring no further adjudication. The court held that the set-off amount mentioned in Form B was an unequivocal admission, justifying the interim award.

2. Applicability of Section 14 of the Insolvency and Bankruptcy Code, 2016:
The appellant argued that the counter-claims could not be filed before the Arbitrator due to the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016. The court noted that the counter-claim had been filed before the Arbitrator pursuant to the District Judge's directions, and both claims and counter-claims could now be adjudicated together. The court emphasized that the set-off amount was an admission of liability and could be considered independently of the counter-claim adjudication.

3. Scope of Interference under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996:
The court reiterated that the scope of interference under Sections 34 and 37 is extremely limited. Interference is permissible only when an award is in conflict with the public policy of India, involves fraud, breach of fundamental policy of Indian law, or is patently illegal. The court emphasized that it is not permitted to independently evaluate the merits of the award but must confine its authority to the parameters permitted under the statute.

4. Jurisdiction and Powers of the Arbitrator under Section 31(6) of the Arbitration and Conciliation Act, 1996:
The court upheld the Arbitrator's jurisdiction to pass an interim award under Section 31(6) of the Act, 1996, based on admissions. The court cited previous judgments recognizing the Arbitrator's power to make interim awards on admissions and clarified that this power is not restricted to exclude admissions made in related proceedings, such as those before the IRP.

5. Consideration of Counter-Claims and Set-Offs in Arbitral Proceedings:
The appellant argued that the set-off amount should be adjudicated along with the counter-claims. The court held that the set-off amount was an admitted liability and could be considered independently of the counter-claims. The court emphasized that the interim award was subject to adjustments at the time of final adjudication, and the set-off amount's admission did not require further evidence.

Conclusion:
The court found no merit in the appellant's arguments and dismissed the appeal. The court upheld the interim award based on the appellant's admissions in Form B and emphasized the limited scope of interference under Sections 34 and 37 of the Act, 1996. The court also dismissed any pending applications as infructuous.

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