#excepted matters

The Supreme Court held that a writ court directing an arbitral tribunal to adjudicate claims 'strictly in accordance with the contract' impermissibly fetters the tribunal's Section 16 kompetenz-kompetenz over excepted matters. The ruling reinforces that tribunals retain exclusive initial jurisdiction to rule on their own jurisdiction, including disputes over contract termination validity, free from judicial pre-direction. This protects party autonomy in arbitration, particularly in government infrastructure contracts with standard general conditions.

Delhi High Court partially set aside the arbitral award, ruling that damages awarded without establishing actual loss and interest counted as damages breach Section 34 of the Arbitration Act. The decision restricts arbitral tribunals to grant only loss-based compensation, with interest payable separately, affecting future construction and contract disputes.