A CASE STUDY ON SERI INFRASTRUCTURE FINANCE VS TUFF DRILLING ((2018) 11 SCC 470)

AUTHOR – KALYANII TIPULE, STUDENT AT MAHARASHTRA NATIONAL LAW UNIVERSITY NAGPUR

BEST CITATION – KALYANII TIPULE, A CASE STUDY ON SERI INFRASTURE FINANCE VS TUFF DRILLING ((2018) 11 SCC 470), INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (1) OF 2024, PG. 1075-1080, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The case study “SERI Infrastructure Finance v. Tuff Drilling: Jurisdiction of Arbitral Tribunals under Section 25(a) of the Arbitration & Conciliation Act, 1996” presents a landmark Supreme Court ruling addressing the tribunal’s authority to reconsider termination orders. The case originated from Srei Infrastructure Finance Ltd.’s legal action against Tuff Drilling Private Limited under arbitration proceedings. Despite several opportunities, Tuff Drilling failed to submit its Statement of Claim, leading to termination of proceedings under Section 25(a) of the Act. Upon the claimant’s application for recall, the tribunal rejected it, prompting a revision application before the Calcutta High Court. The High Court, recognizing the tribunal’s power to review its orders, remitted the matter for reconsideration. Dissatisfied, Tuff Drilling appealed to the Supreme Court, which examined the jurisdiction of arbitral tribunals under Section 25(a). The court analyzed relevant provisions, precedents, and legislative intent, concluding that tribunals possess the authority to recall termination orders upon sufficient cause. This ruling clarifies procedural review in arbitration, ensuring fairness and procedural integrity. It sets a precedent for future cases, emphasizing the importance of considering circumstances before terminating proceedings. Despite strengths in promoting fairness and clarity, challenges like legislative ambiguity and potential for delay warrant attention. Nonetheless, the case underscores India’s commitment to robust arbitration frameworks, promoting access to justice and reinforcing its position in international arbitration.