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The High Court of Delhi in cross petitions titled Technology Information Forecasting and Assessment Council (TIFAC) v. Strategic Engineering Pvt. Ltd. & Anr.1 and Strategic Engineering Pvt. Ltd. & Anr. v. Technology Information Forecasting and Assessment Council (TIFAC)2, through its judgement dated 20.12.2025, held that although the arbitrator has the power to interpret the terms and conditions of the contract executed between parties, the arbitrator being the creature of the contract, does not have the power to substitute, supplement, alter or modify the terms of the contract.
The High Court after perusing the facts of the case found that the arbitrator's interpretation of the Technology Development Assistance Agreement ("TDA") which was executed between the parties was not borne out of the terms of TDA.
The High Court held that it is the solemn responsibility of the arbitrator to adjudicate and decide the disputes while staying within the limits of the contract between the parties. However, as the arbitrator had gone beyond the terms of the TDA and rewritten the contract, the High Court concluded that the arbitral award was vitiated by patent illegality and the same was set aside.
Footnotes
1.O.M.P. (COMM) 548/2020.
2.O.M.P. (COMM) 128/2021.
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