Natural Justice and its Application on Arbitration and Conciliation Act, 1996 : SC Explains the Issue

Natural Justice and its Application on Arbitration and Conciliation Act, 1996 : SC Explains the Issue

It has been stated in Associate Builders v. DDA [2014] GCtR 1661 (SC) at page 23 that "the Audi Alteram Partem principle which undoubtedly is a fundamental juristic principle in Indian law is also contained in Sections 18 and 34 (2) (a) (iii) of the Arbitration and Conciliation Act, 1996".

"Last Word on Facts"

It must clearly be understood that when a court is applying the “public policy” test to an arbitration award, it does not act as a court of appeal and consequently errors of fact cannot be corrected. Once it is found that the arbitrators approach is not arbitrary or capricious, then he is the last word on facts. It was stated at page 43 that "the expression “justice” when it comes to setting aside an award under the public policy ground can only mean that an award shocks the conscience of the court. It cannot possibly include what the court thinks is unjust on the facts of a case for which it then seeks to substitute its view for the Arbitrator’s view and does what it considers to be “justice”."