The Delhi High Court has clarified that appellate interference with an arbitral tribunal's interim order under Section 17 of the Arbitration and Conciliation Act, 1996 is limited. In the case of Talent Unlimited Online Services Pvt. Ltd. and Anr. Vs. Affle India Ltd., the court held that such interference is warranted only when the order is perverse, arbitrary, or manifestly illegal.
The ruling came in an appeal under Section 37(2)(b) of the Act, where the court emphasized the narrow scope of appellate review. The judgment reinforces the principle of minimal judicial intervention in arbitration proceedings, a cornerstone of the arbitration framework in India.
This decision is significant for parties involved in arbitration, as it restricts the grounds on which interim orders can be challenged. It underscores the importance of respecting the tribunal's discretion unless there is a clear legal error.
