Review - Doctrine of merger does not apply when the Supreme Court dismisses an SLP without reason

Jammu & Kashmir High Court Allows Review Petition in Arbitration Case, Clarifies Scope of Arbitrator's Jurisdiction. Doctrine of Merger Not Applicable; High Court Judgment Open for Review Despite Supreme Court's Dismissal of SLP

In a significant development, the Jammu and Kashmir High Court has allowed the review petition filed by the Union of India against its earlier judgment in the case of Union of India v. M/S D. Khosla & Co. The court, presided over by Justice Sanjeev Kumar, clarified that its previous decision to remit certain claims back to the Arbitrator was an error apparent on the face of the record.

The case revolved around the remittance of claims Nos. (1), (2), (4), (8), (15), and (16) for fresh adjudication by the Arbitrator, which was contested by the Union of India. The court acknowledged the oversight and recognized that these claims were contrary to specific contract clauses, thus beyond the Arbitrator's jurisdiction.

The respondent, M/S D. Khosla & Co., had argued that the High Court's judgment could not be reviewed due to the Supreme Court's dismissal of their Special Leave Petition (SLP) without reasons. However, the High Court dismissed this argument, citing the doctrine of merger's inapplicability when an SLP is dismissed without a reasoned order.

Justice Kumar emphasized that the dismissal of the SLP did not constitute a declaration of law under Article 141 of the Constitution, allowing the High Court's judgment to remain open for review on permissible grounds. The court reiterated the limited grounds for review under the Civil Procedure Code, focusing on errors apparent on the face of the record.

With this ruling, the High Court recalled its earlier judgment concerning the specified claims, stating that only claim No. 13 would be remitted to the Arbitrator for fresh adjudication. The court also clarified that any adjudication by the Arbitrator on the recalled claims would be beyond his jurisdiction and therefore a nullity.

The decision underscores the judiciary's commitment to ensuring that arbitration proceedings align strictly with contractual terms and legal standards. It also highlights the procedural nuances involved in the review and appeal processes within the Indian legal system.

Bottom Line:

Review petition maintainability - Doctrine of merger does not apply when the Supreme Court dismisses an SLP without reasons - Judgment of High Court remains open for review on permissible grounds.

Statutory provision(s): Civil Procedure Code, 1908 Order XLVII Rule 1, Doctrine of Merger, Article 141 of the Constitution of India

Union of India v. M/S D. Khosla & Co., (Jammu And Kashmir) : Law Finder Doc Id # 2796394