Delhi Airport Metro Express Pvt. Ltd. vs Delhi Metro Rail Corporation Ltd. on 9 September, 2021
There is merit in Mr Krishnan's contention that the scope of patent
illegality is very narrow and as explained by the Supreme Court in Delhi
Airport Metro Express Pvt. Ltd. v. Delhi Metro Rail Corporation Ltd.
(supra), every error of law committed by an arbitral tribunal does not
fall within the scope of the patent illegality. However, the Court had
also clarified that illegality, which goes to the root of the matter will fall
within the concept of patent illegality. In the present case, this Court
finds that the award passed by the Arbitral Tribunal directing NTPC to
pay the amounts that may be determined in future along with interest
from the date of filing of the Statement of Claims after having
concluded that L&T had failed to establish the amount claimed by it,
reflects illegality that strikes at the root of the matter. The impugned
award to that extent is patently illegal on the face of the award.