The Allahabad High Court on 2 September 2025 allowed the Union of India to convert its petition, originally filed under Article 227 of the Constitution, into an appeal under Section 37 of the Arbitration and Conciliation Act, 1996. The dispute traces back to an arbitral award passed in 2002, which the government had unsuccessfully challenged before the District Judge, Agra.
Background
The case began when the Union of India contested an arbitral award dated 27 May 2002, passed in favour of M/s Bhular Construction Company. The government filed objections under Section 34 of the Arbitration Act, but the District Judge rejected them in March 2010. Dissatisfied, the Union of India approached the High Court, initially through a writ petition under Article 226. Over time, this was converted into an Article 227 petition.
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However, during arguments, the respondents raised a key objection: that an appeal under Section 37 of the Arbitration Act is the correct legal remedy against such orders, not a writ or supervisory petition.
Court's Observations
Justice Manish Kumar Nigam examined prior rulings, including Vishesh Kumar v. Shanti Prasad and Kailash Chandra v. Ram Naresh Gupta. The bench pointed out that while certain judgments had disallowed treating one proceeding as another, there was a consistent line of decisions permitting conversion when justice required it.
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"The principle is founded on the idea that when a cause is already before the court, technicalities should not come in the way of justice," the bench observed.
It also emphasized that such conversions help avoid multiplicity of proceedings.
The respondents, however, insisted that the petitioner should withdraw and file a fresh appeal, seeking condonation of delay if necessary. They cited the 1980 Allahabad decision in Ram Mohan Lal Brij Bhushan Lal v. Union of India.
But the Court leaned on broader precedents, including the Supreme Court’s view in Raliable Water Supply Service v. Union of India, which recognized the judiciary’s power to allow such conversions in appropriate circumstances.
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Decision
In its final order, the High Court permitted the Union of India to convert the pending Article 227 petition into an appeal under Section 37 of the Arbitration Act. The Court granted three weeks’ time for this procedural shift, directing that once converted, the matter should be placed before the appropriate bench for consideration.
By doing so, the Court effectively kept the government's challenge alive, ensuring that the merits of the arbitral award could still be examined, but strictly through the statutory appeal route.
Case Title: Union of India v Bhular Construction Company & Others
Case No.: Matters Under Article 227 No. 8841 of 2023
