Delhi High Court clarifies rules on arbitral awards and commercial decrees

The Delhi High Court has issued rulings clarifying the scope of its authority regarding the execution of arbitral awards and commercial decrees.

In one matter, the court determined that an arbitral award cannot be challenged on its merits during execution proceedings under Section 36 of the Arbitration and Conciliation Act. The court held that parties cannot use execution objections to indirectly seek to set aside an award, a remedy specifically reserved for challenges under Section 34. This decision reinforces the Arbitration Act as a self-contained statutory scheme.

In a separate ruling, the court held that it retains the jurisdiction to execute commercial decrees even if the final amount falls below the ₹2 crore pecuniary threshold, provided the original suit was valued above that amount. The court noted that a reduction in the decretal amount through a settlement does not strip the court of its power to enforce the decree.