Law: Arbitration Act, 1940

Section: 30

(a) Arbitration Act (X of 1940)--- ----S. 30---Arbitration award---Interference by Courts---Scope---Limited scope of judicial review of an Award announced by an Arbitrator stated. The arbitrator alone is the judge of the quality as well as the quantity of the evidence. He is the final arbiter of dispute between the parties. He acts in a quasi-judicial manner and his decision is entitled to utmost respect and weight. Court is not supposed to sit as a court of appeal and make a roving inquiry and look for latent errors of law and facts in the Award. The arbitration is a forum of the parties' own choice its decision should not be lightly interfered by the court, until a clear and definite case within the purview of the section 30 of the Arbitration Act, 1940 is made out. Mian Corporation v. Messers Lever Brothers of Pakistan Ltd. PLD 2006 SC 169 ref. An arbitration Award is a final determination of the dispute between the parties. The grounds for challenging an Award are very limited. There are three broad areas on which an arbitration Award is likely to be challenged i.e. firstly, jurisdictional grounds (non-existence of a valid and binding arbitration agreement); secondly, procedural grounds (failure to observe principles of natural justice) and thirdly, substantive grounds (arbitrator made a mistake of law). Nigel Blackaby and Constantine Partasides QC, Redfern and Hunter On International Arbitration (6th edn, Oxford University Press, United Kingdom 2015), 569-573 ref. The review of an arbitration Award cannot constitute a re-assessment or reappraisal of the evidence by the court. An over-intrusive approach by courts in examination of the arbitral Awards must be avoided. The court is not supposed to sit as a court of appeal and must confine itself to the patent illegalities in the Award, if any.The jurisdiction of the Court under the Arbitration Act, 1940 is supervisory in nature. Where two findings are possible the Court cannot interfere with the Award by adopting its own interpretation. Interference is only possible if there exists any breach of duty or any irregularity of action which is not consistent with general principles of equity and good conscience.…

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