Law: Arbitration Act, 1940

Section: 14, 17, 20, 29, 30

Case Summary The Bureau of Emigration and Overseas Employment (BEOE) challenged a Trial Court judgment that made an arbitration award (dated 28.11.2022) a rule of the court. The dispute arose from a 2009 contract for the construction of the "Emigration Tower," where the BEOE withheld payments and retention money, citing a "punch list" of unfinished works and defects. The Arbitrator awarded the contractor (Respondent No. 1) Rs. 48,278,661/- plus 8% compensation/markup. The BEOE argued that the Arbitrator lacked jurisdiction to award markup/interest as the contract (Clause 60.10) supposedly barred it and that the award was contradictory. The High Court dismissed the appeal and upheld the Trial Court's decision, ruling that the Trial Court correctly performed its mandatory duty of judicial scrutiny under Section 17 of the Arbitration Act, 1940. The Court found that Clause 60.10 of the contract did not impose an absolute bar on interest but only excluded it if delays were due to "circumstances beyond the Employer's control." As the delay was attributable to the Employer, the Arbitrator acted within his jurisdiction. Furthermore, the Court emphasized that under Section 30, judicial interference is limited, and Courts cannot re-examine evidence or substitute their own opinions for those of the Arbitrator unless manifest misconduct or a patent error of law is established. Tagline: An Arbitrator possesses the jurisdiction to award markup/interest unless expressly and unconditionally barred by contract; once an award is reasoned and based on a plausible interpretation of the contract, the Court cannot substitute its judgment for that of the Arbitrator. ORDER; INAAM ANEEN MINHAS, J:- Through the instant appeal, the appellant/ Bureau of Emigration and Overseas Employment (“BEOE”), impugns the judgment and decree dated 15.04.2023 (“Impugned Judgment”) passed by the learned Additional District Judge, Islamabad, West (“Trial Court”), whereby the arbitration Award dated 28.11.2022 was made rule of the Court. The brief facts of the instant appeal are that the Appellant/BEOE, vide letter of acceptance…