M/s Indian Farmers Fertilizer Co-operative Limited v. M/s Bhadra Products - Supreme Court Important Judgment
M/s Indian Farmers Fertilizer Co-operative Limited v. M/s Bhadra Products - Supreme Court Important Judgment 2018 -
On 23rd January, 2018, in the case of M/s Indian Farmers Fertilizer Co-operative Limited v. M/s Bhadra Products [Civil Appeal No.824 of 2018], the question for consideration was whether an award delivered by an Arbitrator, which decides the issue of limitation, can be said to be an interim award, and whether such interim award can then be set aside under Section 34 of the Arbitration and Conciliation Act, 1996.
It was held that as the Arbitrator had disposed of one matter between the parties i.e. the issue of limitation finally, the award in question was an “interim award” within the meaning of Section 2(1)(c) of the Act and being subsumed within the expression “arbitral award” could, therefore, have been challenged under Section 34 of the Act.” However, having said this, the Supreme Court also observed that “piecemeal challenges like piecemeal awards lead to unnecessary delay and additional expense” and that the “Parliament may consider amending Section 34 of the Act so as to consolidate all interim awards together with the final arbitral award, so that one challenge under Section 34 can be made after delivery of the final arbitral award.”