Case Note & Summary
The Union of India (appellant) had invited tenders for construction work, and Moti Enterprises (respondent) was the successful tenderer. The contract was governed by a letter of acceptance dated 29th November 1997 and other documents including General Conditions of Contract, Special Conditions of Contract, Particular Specifications, Drawings, and MES Standard Schedule of Rates. The contract was signed on 4th February 1999. Disputes arose, and the respondent invoked the arbitration clause, claiming Rs.1,88,14,887/-. The sole arbitrator made an award on 30th December 2002, amended on 9th January 2003. The appellant filed petitions under Section 34 of the Arbitration and Conciliation Act, 1996, to set aside the award. The learned single Judge dismissed both petitions on 21st July 2003, holding that all contentions raised before the arbitrator had been taken into consideration, the findings were within the arbitrator's jurisdiction, and could not be challenged in a Section 34 petition. The appellant appealed. The Division Bench, by oral judgment (per S.J. Vazifdar, J.) on 22nd February 2005, dismissed the appeals, agreeing with the single Judge that the arbitrator's findings of fact were not open to challenge under Section 34. The court noted that the decision in Appeal (Lodging) No.993 of 2003 would govern the decision in Appeal (Lodging) No.994 of 2003.
Headnote
A) Arbitration Law - Challenge to Arbitral Award - Section 34 of Arbitration and Conciliation Act, 1996 - Scope of Judicial Review - The appellant challenged the arbitral award on merits, contending that the arbitrator had not considered certain contentions. The learned single Judge dismissed the petition holding that all contentions were considered and findings were within the arbitrator's jurisdiction. The Division Bench upheld this, reiterating that findings of fact by an arbitrator are not open to challenge in a Section 34 petition. (Paras 1-4)
Issue of Consideration
Whether the learned single Judge erred in dismissing the petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging the arbitral award on merits.
Final Decision
Appeals dismissed. The Division Bench upheld the order of the learned single Judge dismissing the petitions under Section 34 of the Arbitration and Conciliation Act, 1996.
Law Points
- Arbitration award cannot be challenged on merits under Section 34 of Arbitration and Conciliation Act
- 1996
- Findings of fact by arbitrator are final
- Court cannot reappreciate evidence in Section 34 petition
