High Court Allows Appeal Reinstating Arbitral Award in Waste Management Contract Dispute Between Leaf Bio-Tech and Thane Municipal Corporation - Sets Aside District Court Judgment on Public Policy Grounds


Summary of Judgement

The High Court allowed an appeal against the District Court's judgment that had set aside an arbitral award in a waste management contract dispute. The arbitral tribunal had awarded damages to Leaf Bio-Tech for Thane Municipal Corporation's breach of contract by stopping garbage supply. The District Court set aside the award citing perversity and conflict with public policy due to high interest rates, non-adjudication of counter-claim, and ex-parte clarification from chartered accountant. The High Court found the arbitral tribunal's findings were based on evidence and not perverse, the interest rate was justified, the counter-claim was properly considered, and no public policy violation occurred. The arbitral award was reinstated.


Headnote

Appeal under Section 37 of Arbitration and Conciliation Act, 1996 -- Impugned judgment dated June 26, 2015 set aside arbitral award dated August 8, 2005 -- Arbitral award ruled in favor of appellant Leaf Bio-Tech Pvt. Ltd. -- District Court set aside award on grounds of perversity and conflict with public policy -- High Court examined whether award was contrary to public policy -- High Court found no perversity in arbitral tribunal's findings -- Arbitral tribunal's approach to interest rate and counter-claim was justified -- No violation of public policy established -- Arbitral award reinstated

Case Title: High Court Reinstates Arbitral Award in Waste Management Contract Dispute - Sets Aside District Court Judgment on Public Policy Grounds

Citation: 2025 LawText (BOM) (11) 24

Case Number: Arbitration Appeal No. 46 of 2015

Advocate(s): Arif Bookwala, Senior Advocate a/w. Chirag Chanani, Chaitanya Bhandarkar, Sachet Makhija, Mihika Joshi i/b Dhruv Pathak, Advocates for the Appellant; R.S. Apte, Senior Advocate i/b Mandar Limaye, Advocate for Respondent No.1; Prakash Panjabi i/b. Prakash Panjabi, Advocate for Respondent No.2

Date of Decision: 2025-11-03


Final Decision

High Court allowed the appeal and set aside the Impugned Judgment -- Reinstated the arbitral award dated August 8, 2005