SC upholds arbitral award in Aakash dispute, rejects Paramount's plea

Top court declines to interfere with Delhi High Court ruling affirming arbitral award directing Paramount Learning to pay dues to Aakash Educational Services

The Supreme Court on Tuesday declined to entertain a challenge mounted by Paramount Learning Solutions in a franchise dispute with Aakash Educational Services, effectively affirming the outcome reached in arbitration and upheld by the Delhi High Court.

 

A Bench comprising Justice P S Narasimha and Justice Alok Aradhe refused to interfere with the High Court’s August 7, 2025 ruling, which had endorsed an arbitral award directing Paramount to pay approximately ₹66.31 lakh to Aakash in connection with the operation of a coaching centre in Pathankot, Punjab.

 

Counsel for Paramount argued that the arbitral award was vitiated by patent illegality and ran contrary to the framework of the 2016 franchise agreement between the parties. It was contended that the arbitrator had disregarded contractual provisions and granted financial reliefs inconsistent with the agreed terms. The Bench, however, was not persuaded to examine the matter further and dismissed the plea.

 

 

The dispute traces back to a franchise arrangement executed on June 30, 2016, under which Paramount was authorised to run an Aakash coaching centre at Pathankot, subject to revenue-sharing obligations and other contractual conditions. Differences surfaced after alleged payment defaults by the franchisee, coupled with disputes over discontinuation of services and eventual closure of the centre in May 2020. Aakash subsequently terminated the agreement on May 11, 2020, invoking its contractual rights.

 

Arbitration proceedings were initiated on June 29, 2020. In an award dated February 9, 2023, later corrected on March 6, 2023, the arbitrator upheld the termination and allowed monetary claims in favour of Aakash.

 

Paramount’s challenge under Section 34 of the Arbitration and Conciliation Act was rejected by the Commercial Court on April 19, 2024.

 

On appeal, the Delhi High Court affirmed the award, underscoring the narrow scope of judicial review in arbitral matters and observing that courts cannot reassess the merits of an arbitral decision.