TaxTMI 
TaxTMI 
2026 (4) TMI 1506
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....3, passed by the High Court of Judicature at Madras in CRP No. 676/2013, whereby Civil Revision Petition preferred by the appellant against arbitral award dated 21.02.2011 in Arbitration Case No. 1/2011 ['the Arbitral Award'.] came to be dismissed. Brief Facts 3. The genesis of the present lis is from a 'Deed of Agreement for Sale' entered into between one Mr. Appu John [alleged paternal uncle of the appellant] and Respondent No. 1 herein, S. Mukanchand Bothra, for the sale of the subject property on 20.04.2007 ['the Agreement'.]. Thereafter, Mr. Appu John, passed away on 28.07.2007. Respondent No. 1 initiated arbitration against Respondent No. 2, A. Philip, in 2011, alleging violation of the above Agreement. The case of the appellant....
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....bitration Act, and in view of such statutory remedy - the challenge under Article 227 of the Constitution cannot be permitted. Our View 8. We have heard the learned counsel appearing on behalf of the appellant. We have also heard Mr. Gagan Bothra, respondent no. 3 - in person. As the other respondents have chosen not to enter appearance, this Court appointed Mr. Chakradhari Sharan Singh and Ms. Gauri Rajput, as amici curiae to assist the Court in this matter vide order dated 03.09.2025. 9. The issue which arises before us is whether the appropriate remedy for legal heirs aggrieved by an arbitral award would be a petition under Section 34 of the Arbitration & Conciliation Act, 1996 ['the Arbitration Act'.] or a petition under Articl....
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....t. 13. In the considered view of this Court, the appropriate relief for a legal representative to challenge an arbitral award is under Section 34 of the Arbitration Act and not under Article 227 of the Constitution/Section 115 of the CPC. 14. The Arbitration Act is a complete Code in itself. The object of the Act is to consolidate the laws pertaining to domestic arbitration, international arbitration and enforcement of foreign arbitral awards. Section 34 thereof enumerates the grounds on which a Court may set aside an arbitral award, upon an application made by a party. The relevant portion reads: "34. Application for setting aside arbitral award.- (1) Recourse to a Court against an arbitral award may be made only by....
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...... ... It is therefore, prudent for a Judge to not exercise discretion to allow judicial interference beyond the procedure established under the enactment. This power needs to be exercised in exceptional rarity, wherein one party is left remediless under the statute or a clear "bad faith" shown by one of the parties. This high standard set by this Court is in terms of the legislative intention to make the arbitration fair and efficient." (emphasis supplied) 16. At this stage, we must consider whether the term 'party' in Section 34, would include 'legal representatives' claiming thereunder. A 'legal representative' has been defined under Section 2(1)(g) of the Act as: "(g) "legal representative" means a person w....
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....e shoes of a party for the purposes of the Act. Similarly, this Court in Rahul Verma and Ors. v. Rampat Lal Verma and Ors. 2025 SCC OnLine SC 578., while permitting legal heirs of a deceased partner to invoke arbitration under the agreement therein, had noted that upon the death of the deceased, the legal heirs had 'stepped into the shoes of the deceased' and therefore, the arbitration clause continues to bind all concerned parties. 19. Moreover, in the considered view of this Court, when an award has been made enforceable against the legal representatives of a deceased party under the Act, the right to challenge such an award, which is available under the Act to the parties, also has to naturally flow to the said legal representatives. ....
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....ave the right to enforce the award and are also bound by it. The arbitration agreement is enforceable by or against the legal representative of a deceased party provided the right to sue in respect of the cause of action survives." (emphasis supplied) 20. Taking into view the above observations, denying a legal representative the right to challenge an award under Section 34, would defeat the very object of the Arbitration Act, and its purpose as a self-contained complete Code of dispute resolution. Furthermore, as discussed above, such an interpretation is also in furtherance of continuity of arbitral proceedings as envisioned under the Arbitration Act. Moreover, in our view, legal representatives of a deceased party cannot be made re....