Case Note & Summary
The petitioner, a Cooperative Housing Society, challenged an arbitral award dated 31 March 2010 passed by a sole arbitrator under Section 34 of the Arbitration and Conciliation Act, 1996. The dispute arose from a repair agreement dated 20 January 1996 for a residential building. The contract was terminated by the petitioner, leading to a suit in the Bombay City Civil Court, which referred the matter to arbitration. An initial award dated 30 May 2005 was set aside by consent of parties, and a fresh arbitration was conducted. The parties filed claims and counterclaims but led no oral evidence; the arbitration proceeded on documents, including those from previous proceedings. The arbitrator awarded Rs. 6,41,971 and Rs. 2,45,693 in favor of the respondent (claimant) with interest at 12% per annum from 1 May 1999, and 18% per annum after 60 days. The petitioner challenged only the grant regarding external plaster with guniting, arguing it was perverse. The court held that under Section 34, it cannot reappreciate evidence or substitute its own view unless the award is perverse or contrary to law. The arbitrator's findings were based on documents and were not perverse. The petition was dismissed with no order as to costs.
Headnote
A) Arbitration - Section 34 Petition - Scope of Interference - The court cannot reappreciate evidence or substitute its own view unless the award is perverse or contrary to law - The arbitrator's findings based on documents and previous proceedings are final - Held that no interference is warranted under Section 34 of the Arbitration and Conciliation Act, 1996 (Paras 4-5).
Issue of Consideration
Whether the arbitral award granting Rs. 6,41,971 and Rs. 2,45,693 with interest to the respondent is liable to be set aside under Section 34 of the Arbitration and Conciliation Act, 1996 on grounds of perversity or patent illegality.
Final Decision
The petition is dismissed. No order as to costs.
Law Points
- Section 34 of Arbitration and Conciliation Act
- 1996
- scope of interference
- perversity
- no reappreciation of evidence
- award based on documents
- no evidence led
- interest rate
- contractual dispute
