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JUDGMENT OF DELHI HIGH COURT GIVING GUIDELINES AS TO WHEN ARBITRATION AWARD CAN BE SET ASIDE AND WHEN NOT, ARBITRATION LAWYER IN DELHI, CIVIL LAWYER IN DELHI

Latest news January 17, 2019 600

JUDGMENT OF DELHI HIGH COURT GIVING GUIDELINES AS TO WHEN ARBITRATION AWARD CAN BE SET ASIDE AND WHEN NOT



256 (2019) DELHI LAW TIMES 42 (DB)



DELHI HIGH COURT



S. Ravindra Bhat, J. & A.K. Chawla, J.



WISHWA MITTAR BAJAJ AND SONS—Appellant



versus



SHIPRA ESTATE LTD AND JAIKISHAN ESTATES DEVELOPERS P. LTD.—Respondent



FAO (OS) (COMM) 162/2017 & CM APPL. 3913 of 2018—Decided on 14.12.2018



(i) Arbitration and Conciliation Act, 1996 — Section 34 — Arbitral award — Setting aside — Tribunal had benefit of considering entire record, depositions of witnesses and circumstances of case — These include demeanor of witnesses who deposed before it and their trustworthiness — Aspects that are within legitimate domain of fact-finding Tribunal, i.e. arbitrator — Findings were with respect to factual matters, scope of interference by Court under Section 34 of Act was minimal — Courts, in exercise of their power under Section 34 of Act, would not be competent to set aside arbitral award merely because they do not agree with interpretation of agreement given by Arbitrator — If such interpretation of agreement by Arbitrator is plausible, Award has to be upheld.



(ii) Arbitration and Conciliation Act, 1996 — Section 34 — Arbitral award — Setting aside — Respondent did not produce any forensic expert, to contend that letters it denied were forged — Respondent’s objections under Section 34 did not contain any specific ground against those pointed factual findings — Single Judge’s conclusion that oral evidence could not prevail over written terms of contract, especially in context of finding that denial of arbitration agreement, was not tenable — Those findings are pursuant to process of reasoning, which discussed evidence led before Tribunal — Weight to be attached to position taken by party by Tribunal, is ultimately factual one based not only on written terms of contract, but also on attendant circumstances — Arbitrator cannot also be said to have made unreasoned award — Single Judge could not have justly interfered with findings — Impugned judgment cannot be sustained — Award is upheld.




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