J S CONSTRUCTION Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) Work of construction of houses in Trilok Puri had been assigned. The agreement between the parties contained a clause for arbitration to refer the disputes, when disputes had arisen Shri R J Bakhru had been appointed as the sole arbitrator. The arbitrator had published his award on 29/12/1994 and filed it in court. Notices were issued to the, parties. In pursuance thereto the Delhi Development Authority, hereinafter described as the objector, has filed the objections. The applicant/petitioner (J S Constructions) had contested the various grounds taken by the objector for setting aside of the award. By the present judgment the objections filed by the said objector/DDA are being disposed.

(2.) The main argument advanced was that the arbitrator has travelled beyond the agreement between the parties and once the arbitrator has so travelled beyond the agreement between the parties, it must be taken that he has misconducted himself.

(3.) This proposition of law in fact has not been disputed at the bar. Arbitrator is appointed as a result of a contract between the parties. It is the contract and the terms of the contract which binds the parties. They cannot travel beyond the same. The arbitrator draws all its powers from the said contract. If the contract prohibits the arbitrator from doing any particular act in that event the parties necessarily would be bound by the same.