Delhi High Court in the matter of NTPC Ltd vs. Larsen and Toubro Limited & Anr. has ruled that where a party has filed an application seeking to update/revise its counter claims before the Arbitral Tribunal, intending to primarily alter/change the amount of the counter-claims, the said application was, in effect, an application for amendment of the counter-claims, even though it was termed as an ‘updation application’.

The Delhi High Court was dealing with a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (“A&C Act”), challenging the Arbitral Tribunal’s order where it had rejected the party’s application seeking updation/ revision of its counter claims on the ground that the same was filed belatedly.

Referring to the provisions of Section 23(3) of the A&C Act, the Court held that the Tribunal was within its right to reject the application for updation / revision, which in effect was for amendment of the counter-claims, on the ground that the same was made belatedly.

Section 23(3) of the A&C provides that, unless otherwise agreed by the parties, either party may amend/ supplement his claim or defence during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow the amendment or supplement having regard to the delay in making it.

Therefore, the Court found the Tribunal’s decision to reject the application for updation /revision of claims valid and upheld the same.