High Court May Grant Article 227 Interim Relief In Arbitration Proceedings In Exceptional Cases : Supreme Court

The Supreme Court ruled that High Courts may grant interim relief under Article 227 in arbitration matters, but only in exceptional circumstances where the arbitral tribunal's decision would cause irreparable harm. The bench clarified that such intervention should be rare, maintaining arbitration's autonomy as intended by the Arbitration Act. The case involved a construction dispute where the High Court stayed arbitral proceedings under its supervisory jurisdiction. While upholding the principle of minimal judicial interference, the apex court recognized that constitutional courts retain residuary powers to prevent grave injustice. This nuanced judgment balances arbitration's self-contained nature with constitutional safeguards, providing guidance on when higher judicial intervention becomes necessary. The ruling emphasizes that routine contractual disputes shouldn't warrant Article 227 interference, reserving it for cases involving jurisdictional errors or violations of natural justice that can't be remedied post-award.