Conduct-based reopening of disputes and rejection of narrow reference restrictions

Where both parties, by their subsequent conduct, repudiate the recommendations of an intermediate adjudicator and seek a comprehensive declaration on the validity and merits of the dispute resolution process, the entire controversy is thrown open before the arbitral tribunal. When an employer initiates arbitration challenging an adjudicator’s decision and subsequently petitions the arbitral tribunal under Section 16 to declare the entire adjudicator’s order null and void, it effectively demonstrates a clear intention to reopen all underlying issues originally brought for determination. Under such circumstances, the employer is estopped from contending that the arbitral reference is rigidly restricted to only one dispute or that the contractor is prohibited from presenting its substantive counterclaims and claims on all related issues before the tribunal. (M/s Bhagheeratha Engineering Ltd. Vs State of Kerala | 2026 INSC 4)