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Arbitral award could be set aside if Terms and Conditions of Contract has not been followed: JK High Court

Case Law Details

TaxGuru Citation
2022 taxguru.in 4033
Case Name
Union of India Vs D. Khosla and Company (Jammu and Kashmir High Court)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
09/05/2022
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Union of India Vs D. Khosla and Company (Jammu and Kashmir High Court)

Conclusion: In present facts of the case, the Arbitral award was set aside partially by the Hon’ble High court on the basis that the arbitrator has clearly exceeded his jurisdiction and has awarded most of the items of claims by either ignoring the terms and conditions of the contract or acting in derogation therefrom.

Facts: In present facts of the case, the Hon’ble High Court have partially allowed the appeal, wherein Union of India through Chief Engineer (P) Sampark appealed under Section 39 of J&K Arbitration Act, 2002 against the order and judgment of the Principal District Judge, Jammu. The Court vide its judgment dated 11.01.2014, impugned in this appeal, has dismissed the application of the Union of India filed under Section 30 and 33 of the Act for setting aside the arbitral award dated 04.01.2008 passed by the sole arbitrator.

The Union of India feeling aggrieved by the award passed by the sole arbitrator, filed an application under Section 30 and 33 of the Act for setting aside the award on several grounds before the Court below:

“1. Whether the arbitrator has travelled beyond the ambit of contract agreement?

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