Law: Arbitration Act, 1940

Section: 30

(a) Arbitration Act (X of 1940)---S. 30---Award, setting aside of---Scope---Grounds recognized by law for setting aside award being very limited---Principles. An arbitration forum is one of exclusive jurisdiction based on the choice of parties. Award rendered in arbitration is not to be lightly interfered with as grounds for interference are very limited. Out of such grounds an error of law apparent on the face of award, misconduct on part of arbitrator or in proceedings or an award improperly procured or is otherwise invalid are recognized by law. Kh. Ghulam Rasool Lone v. Azad Jammu and Kashmir Government PLD 1971 AJK 127; Ghulam Abbas v. Trustees of the Port of Karachi PLD 1987 SC 393; Messrs Combined Enterprises v. Water and Power Development Authority, Lahore PLD 1988 SC 39; Government of East Pakistan v. Messrs A. Rab and Sons and another PLD 1967 (Dacca) 797; Dr. Khalida Malik and 2 others v. Mst. Farida Malik and 7 others 1994 MLD 2348; Province of Punjab through Secretary to Government of the Punjab Communications and Works Department Lahore and another v. Messrs Tarmic Construction (Pvt.) Limited 1999 CLC 946; Pakistan Steel Mills Corporation, Karachi v. Messrs Mustafa Sons (Pvt.) Ltd., Karachi PLD 2003 SC 301; Messrs Tribal Friends Co. v. Province of Balochistan 2002 SCMR 1903; Zakaullah Khan v. Government of Pakistan through Secretary, Buildings and Roads Department, Lahore PLD 1998 Lah. 132 and S.G. Rayon Mills (Pvt.) Limited v. Fida Hussain and Associates 2002 CLC 353 rel. (b) Arbitration Act (X of 1940)--- ----S. 39---Appeal against order of Trial Court making award rule of court---Powers of High Court to interfere with such order---Scope stated. High Court while adjudicating the validity of an award does not sit as a Court of Appeal over the Arbitrators as well as Arbitration Court. If the findings of the Arbitrators are based on documentary evidence and are not perverse and if there is no misreading or non-reading of evidence, the findings of Arbitrators cannot be disturbed. Weight of the judicial opinion has always been in favour of non-interference in the findings of the Arbitrator/Arbitrators, if it is based on evidence. Until and unless it…

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