Law: Arbitration Act, 1940

Section: 13,29,17,30,31,39

(a) Arbitration Act (X of 1940)--- ----Ss. 13 & 29---Arbitrator awarding interest---Competency---Enforcing of terms different than those contained in contract---Validity---In absence of any contract or statutory provisions of mercantile usage, the arbitrator was not competent to award interest---Arbitrator was not entitled to act in breach of terms of the contract or to enforce terms different than the one contained in that contract. Ghulam Abbas v. Trustees of the Port of Karachi PLD 1987 SC 393 rel. (b) Arbitration Act (X of 1940)--- ----Ss. 17, 30 & 31---Award---Examination of---Question of misconduct and legal error---Jurisdiction of Trial Court---Scope---Arbitrator was a Judge of law and facts but that would not mean that the Trial Court was denuded of its jurisdiction to examine the question of misconduct and legal error apparent on the face of award---Court was not bound to provide blanket to any illegal, irrational or illegal award. (c) Arbitration Act (X of 1940)--- ----Ss. 31 & 39---Examination of validity of award by the Court---Scope--­Repelling of objections without framing of issues and recording of evidence---Validity---Court repelled the objections against the award without framing of issues and recording of evidence---Court under the provisions of S.17 of Arbitration Act, 1940 was bound to examine the award if the same suffered from any invalidity, misconduct and error of law, though no objections had been filed---Court was also bound to consider if the award was liable to be remitted---Where the Court did not give serious consideration to the matter of extra importance and objections against the award, order of the Court making award as rule of the Court was set aside by High Court. JUDGMENT This first appeal is under section 39 of the Arbitration Act, 1940, against order, dated 16-3-1998, by which the Court refused to set aside the award on dismissing the objections of the appellant and proceeded to make the award a rule of the Court. 2. Respondent filed an application under section 14(2) read with section 17 of the Arbitration Act, for filing of award, dated 7-8-1996, in the Court and for making the same rule of the Court with a…

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