Punjab State Civil Supplies Corporation Ltd. Vs M/S Sanman Rice Mills & Ors.

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Punjab State Civil Supplies Corporation Ltd. Vs M/S Sanman Rice Mills & Ors.

In Punjab State Civil Supplies Corporation Ltd. vs M/S Sanman Rice Mills & Ors. [2024 INSC 742], the Supreme Court of India upheld an arbitral award and emphasized limited judicial intervention under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996. The dispute concerned outstanding dues between the Punjab State Civil Supplies Corporation (appellant) and M/s Sanman Rice Mills (respondent). While the arbitral award in favor of the appellant was upheld by the Additional District Judge under Section 34, it was later set aside by the High Court under Section 37. The Supreme Court, citing precedents such as MMTC Ltd. v. Vedanta Ltd. (2019) and Konkan Railway Corp. v. Chenab Bridge Project (2023), reinstated the award, stating that courts should not interfere with arbitral decisions based on alternative views of facts or contractual interpretation, thus preserving the integrity of the arbitral process.

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