New Delhi, Jan. 13 -- The Supreme Court overturned a Kerala High Court ruling that restricted arbitral tribunals from deciding issues beyond the specific reference without a fresh Section 21 notice, and reinstated an award in favour of Bhagheeratha Engineering Ltd in its road maintenance dispute with the State of Kerala.

A Bench of Justices J.B. Pardiwala and K.V. Viswanathan held that the High Court wrongly curtailed the arbitral tribunal's jurisdiction by insisting on a separate Section 21 notice, adopting an overly narrow view of the scope of arbitration.

Scope and Purpose of Section 21 Explained

Clarifying the position, the Court held that Section 21 merely determines the commencement of arbitral proceedings for limitation purposes...