M/S.Bhagheeratha Engineering Ltd vs State Of Kerala

The Supreme Court examined the correctness of the Kerala High Court's decision which upheld the District Judge's order setting aside an arbitral award on the grounds that the award exceeded the scope of reference and violated contractual terms. The dispute centered on whether the Arbitral Tribunal was empowered to decide on multiple disputes when it was appointed only to adjudicate one specific dispute under the Arbitration and Conciliation Act, 1996. The Court analyzed the procedural requirements under Section 21 of the A&C Act regarding the initiation of arbitration for multiple disputes. Ultimately, the Supreme Court affirmed the principle that an arbitral tribunal's jurisdiction is confined to the disputes referred to it, and awards beyond that scope can be set aside.