Law:

Section:

(a) Arbitration Act (X of 1940)-------Ss. 14, 20 & 30---Non-completion of work by respondent within agreed time---Award of fresh contract by applicant to a third party for completing remaining work--- Respondent's notice to appellant claiming Rs.1,13,78,207---Reference of dispute between parties to Arbitrator in terms of arbitration clause in contract---Submission of claim by respondent for Rs.2,24,18,619 instead of Rs.1,13,78,207---Award by Arbitrator for differential amount of Rs.4.9 million made rule of court by Trial Court---Validity---According to terms of contract, respondent's claim had to be confined to amount for which he had issued notice to applicant---Neither court nor Arbitrator was competent to enlarge scope of contract or application made under S.20 of Arbitration Act, 1940---Award for differential amount between respondent's contract and such third party's contract was beyond jurisdiction of Arbitrator---Arbitrator's function was not to be influenced by his imagination and opinion, rather he was obliged to apply agreed clauses of contract between parties---High Court set aside impugned and remanded case to Trial Court for its decision afresh in terms of reference. Fauji Foundation and another v. Shamim-ur-Rehman PLD 1983 SC 457 and Shamim-ur-Rehman v. Fauji Foundation, Rawalpindi and another 1992 SCMR 1496 ref. House Building Finance Corporation v. Shahinshah Humayun Corporative House Building Society and others 1992 SCMR 19 and Shamim-ur-Rehman v. Fauji Foundation, Rawalpindi and another 1992 SCMR 1496 rel. (b) Arbitration Act (X of 1940)--- ----Ss. 17 & 30---Making award rule of court---Powers of court---Scope---Court while examining correctness and legality of award could neither act as a court of appeal nor undertake reappraisal of evidence recorded by Arbitrator in order to discern error or infirmity therein. (c) Arbitration Act (X of 1940)--- ----S. 30--- Award, setting aside of--- "Misconduct of Arbitrator"---Meanings. In the judicial sense, the misconduct of an Arbitrator means his failure to perform his essential duty resulting in substantial miscarriage of justice between the parties. Mian Corporation through Managing Partner…

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