Judicial Review of Arbitral Awards Concerning Limitation, Internal Res Judicata, and Proof of Damages.
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Case: ZAWAR SALES CORPORATION v. RELIANCE PETRO MARKETING LTD
Court: Bombay High Court
Date: 30-06-2026
Law: Arbitration and Conciliation Act, Limitation Act, Indian Contract Act.
Highlights of the Judgment:
- An analysis of the scope of judicial interference under Section 34 of the Arbitration and Conciliation Act, 1996, regarding "patent illegality".
- Examination of the distinction between jurisdictional rulings under Section 16 and final adjudications on limitation under the doctrine of "internal res judicata".
- Interpretation of Section 22 of the Limitation Act, 1963, distinguishing "continuing wrongs" from successive breaches in commercial contracts.
- Application of the "honest guesswork" principle in quantifying damages and the prerequisite of proving the actual existence of loss.
- Discussion on the arbitrator's primacy in contractual interpretation and the legal effect of waiver and acquiescence in pricing disputes.
- Review of evidentiary standards required to substantiate claims for loss of goodwill and business earnings in arbitration.