The Supreme Court has dismissed a plea filed by Paramount Learning Solutions in a franchise dispute with Aakash Educational Services Ltd., declining to interfere with a judgment of the Delhi High Court dated August 7, 2025, which had upheld an arbitral award in favour of Aakash.
A Bench of Justices P.S. Narasimha and Alok Aradhe refused to intervene, thereby affirming the High Court’s decision. The arbitral award, which pertained to the operation of an Aakash coaching centre in Pathankot, had directed Paramount Learning Solutions to pay approximately ₹66.31 lakh to Aakash.
Counsel appearing for Paramount argued that the arbitral award was contrary to the terms of the 2016 franchise agreement and suffered from patent illegality. It was contended that the award disregarded the contractual framework between the parties and granted monetary reliefs inconsistent with the agreed terms. The Bench, however, was not persuaded and dismissed the petition.
The dispute arose out of a franchise agreement dated June 30, 2016 between Aakash Educational Services Ltd. and Paramount Learning Solutions for running a coaching centre in Pathankot. Under the agreement, the franchisee was required to share revenue and adhere to contractual obligations. Differences emerged when the franchisee allegedly defaulted on payments, failed to clear dues, and issues arose over the stoppage of services and eventual closure of the centre in May 2020. Aakash subsequently terminated the agreement on May 11, 2020, invoking the relevant contractual provisions.
Arbitration proceedings commenced on June 29, 2020, culminating in an award dated February 9, 2023 (later corrected on March 6, 2023), in which the arbitrator upheld the termination and allowed monetary claims in favour of Aakash. A challenge to the award under Section 34 was dismissed by the Commercial Court on April 19, 2024.
On appeal, the Delhi High Court upheld the award, reiterating the limited scope of judicial interference and observing that courts cannot undertake an independent assessment of the merits of an arbitral award.
By dismissing the plea from Paramount Learning Solutions, the Supreme Court has affirmed that it will not entertain attempts to re-litigate the merits of a dispute once an arbitrator has delivered a verdict, unless there is patent illegality.
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