Law:

Section: 30,33

(a) Arbitration Act (X of 1940)--- ----Ss. 30 & 33---Grounds for setting aside arbitration award---Scope---Patent illegality---Error apparent on the face of the award---Award of the arbitrator who was chosen as judge of facts and of law, between the parties, could not be set aside unless the error was apparent on the face of the award or from the award it could be inferred that the arbitrator had misconducted himself under Ss. 30 & 33 of the Arbitration Act, 1940---While making an award the Rule of the Court, in case parties had not filed objections, the Court was not supposed to act in a mechanical manner, like the post office and put its seal on it but had to look into the award and if it found patent illegality on the face of the award, it could remit the award or any of the matter(s) referred to arbitrator for reconsideration or set aside the same---While doing so, the Court, however, would not try to find out patent irregularity, and only if any patent irregularities could be seen on the face of award/arbitration proceedings like the award was beyond the scope of the reference or the agreement of arbitration was a void agreement, or the arbitrator awarded damages on black market price, which was prohibited by law, or the award was given after superseding of the arbitration, etc., could the same be set aside. (b) Arbitration Act (X of 1940)--- ----Ss. 26-A & 30---Arbitrator, powers of---Scope---Grounds for setting aside arbitration award---Principles stated. Following are the general principles with regard to powers of an arbitrator and the grounds upon which an arbitration award could be set aside: (i) When a claim or matters in dispute were referred to an arbitrator, he was the sole and final Judge of all questions, both of law and of fact; (ii) The arbitrator alone was the judge of the quality as well as the quantity of evidence; (iii) The very incorporation of section 26-A of the Arbitration Act, 1940 requiring the arbitrator to furnish reasons for his finding was to enable the Court to examine that the reasons were not inconsistent and contradictory to the material on the record. Although mere brevity of reasons shall not be ground for…

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