Jurisdictional boundaries of appellate review under Section 37 in overturning arbitral awards

Appellate courts exercising jurisdiction under Section 37 of the Arbitration and Conciliation Act, 1996 cannot set aside an arbitral award on technical or hyper-procedural grounds that were never raised before the arbitral tribunal or in the challenge petition under Section 34. The jurisdiction under Section 37 is supervisory and circumscribed, requiring the court to evaluate whether the Section 34 court acted within the narrow grounds of patent illegality or public policy violation. Where the arbitral tribunal, upon considering the comprehensive scope of the arbitration agreement and the pleadings of the parties, renders a ruling under Section 16 assuming jurisdiction over all unsettled claims, setting aside the final award on the mistaken premise of non-issuance of a Section 21 notice represents an erroneous expansion of appellate interference that destabilizes arbitral finality. (M/s Bhagheeratha Engineering Ltd. Vs State of Kerala | 2026 INSC 4)