Case Law Details
Hindustan Petroleum Corporation Ltd. Vs Banu Constructions (Madras High Court)
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The argument on behalf of the appellant is short and sweet: that the first principles of arbitration law do not permit an unreasoned order to be justified by supplementing reasons therefor upon looking into the evidence or records pertaining to the arbitral reference.
2. This is a classic example of what cannot be done by an Arbitration Court when in receipt of a petition for setting aside an arbitral award. The primary ground of challenge before the Arbitration Court was that the award was unreasoned. As if in agreement with such principal contention, some 30 pages have been expended in constructing an order that seeks to give reasons and legal crutches to a completely unreasoned award.
3. It is elementary that when parties to an agreement carry their disputes to a consensual forum in preference to the usual forum of a civil Court, the Court will be slow in entertaining a challenge that either party may come up with on being dissatisfied with the resultant award. The Court will hold the parties to their bargain and require them to abide by the decision of their consensual tribunal. This principle is subject to certain exceptions. The exceptions have been statutorily recognized in Section 34 of the Arbitration and Conciliation Act, 1996. It may only be said that, in essence, Section 34 of the Act provides for a supervisory jurisdiction to correct manifest errors and to ensure that there is no grave miscarriage of justice. However, by no stretch of imagination does Section 34 of the Act confer appellate authority on the Arbitration Court in seizin of a petition to set aside the award.
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