Arbitration and Conciliation Act, 1996 : Arbitral Award Upheld and Petition Challenging Award Dismissed

Arbitration and Conciliation Act, 1996 : Arbitral Award Upheld and Petition Challenging Award Dismissed 

Section 7 (2) of Arbitration and Conciliation Act, 1996 says that an arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. Section 12 (5) of the said Act says that notwithstanding any prior agreement to the contrary, any person whose relationship, with the parties or counsel or the subject-matter of the dispute, falls under any of the categories specified in the Seventh Schedule shall be ineligible to be appointed as an arbitrator. On the other hand, Section 23 (2) of the said Act says that the parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit.

In an interesting case citation [2018] GCtR 3019, the challenge was made to an arbitral award by way of a petition. The party challenging the award had raised the argument that arbitral award contains gross error without examining certain aspects. The petition challenging the arbitral award was dismissed and the arbitral award was found to be validly passed and it was concluded that there is infirmity in the arbitral award which was challenged. 

[2018] GCtR 3019 arose out of a tender and the work was to be completed within a particular time. One of the party had requested for referring the disputes to an arbitrator and in terms of the arbitration clause, arbitration proceeding arose. Arbitrator, before passing the arbitral award, had also framed multiple issues and came to its conclusion. During the course of challenge to the arbitral award, the pleadings of the party were gone into. 

Ultimately, it was concluded in [2018] GCtR 3019 that the arbitral award was not contrary to the terms of the agreement between the parties.

Written by 

Vishal

Delhi

Notice : Copyright of above blog and its content including headline vests with Vishal. Above should Not be reproduced in any form in newspapers/websites/Ph.D. thesis/College projects/ law firms' newsletters/law journals/books/book chapters without prior written permission. Fair use should be in terms of Copyright Act, 1957. Any violation will make violator liable for Pecuniary compensation with interest towards the author irrespective of the profit made. All disputes shall be subject to Delhi Jurisdiction.