Law:

Section:

Arbitration Act (X of 1940)------ S. 30-Misconcluct, what is­ Commercial arbitrators appointed in terms of arbitration clause contained in contract whereby proceedings were to be regulated Rules of a Chamber of Commerce-Rules providing dispute to be decided on written statements of parties without necessities, of personal hearing-Held, arbitrators hail before then? sufficient materials for making award without an necessity of holding formal hearing with notices to parties-No legal misconduct committed by arbitrators. Legal misconduct means misconduct in the judicial sense arising from some honest, though erroneous, breach and neglect of duty oil the part of the arbitrators causing miscarriage of justice. A commercial dispute, in terms of arbitration clause in the contract, was referred to a Chamber of Commerce for adjudica­tion. The arbitration was recited that the arbitration proceeding was to be regulated by the Rules of the Chamber of Commerce. The Rules contained a provision that "the dispute will be decided on the written statement of the parties and oral evidence will not be taken nor will the parties be entitled to appear nor any formal hearing be held". The award given, by the arbitrators was subsequently challenged oil the ground that it was liable to set aside inasmuch as it was made ex part and without notice the parties: Held, in view of the absolute Rule XVI of the Rules of the Chamber of Commerce, neither party to the arbitration proceeding could have any grievance oil the ground that the arbitrators n-lade an award without holding a formal hearing with notice to the par­ties or calling for evidence from them or giving them an opportunity of being heard. This Rule, though absolutely discretionary, does not mean that the arbitrators can act capriciously or arbitrary in adjudicating a dispute referred to them for arbitration. In the present case, the arbitrators had before them the admitted con­tract between the parties, their respective written statements and rejoinders and also the series of letters exchanged between them. As the arbitrators proceeded to consider the dispute on the basis of those materials and as they treated both the parties…

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