SEWA SONS BUILDERS Vs. UNION OF INDIA

JUDGEMENT

(1.) There is no gainsaying the fact that the Arbitrator is an instrument of the agreement and is not over it. If the Arbitrator traverses beyond the terms of the agreement such an award is liable to be set aside. He has to remain within the four corners of the agreement. However, at the same time, it is cardinal principle that the sanctity of the award should always be preserved because the parties choose their own forum reposing their full faith not only in his competence but also in his integrity and impartiality. The parties, are, therefore restrained from picking holes with the findings of the Arbitrator unless bias or perversity is manifest and pronounced.

(2.) At the same time, the court should also refrain from re-appreciating or re-assessing the evidence or material on which the Arbitrator has based his findings. If this is allowed, it would amount to functioning of court as appellate court which it is not. This is neither the object of Arbitration Act nor the permissible area. The above principles have been culled out mainly in view of the objections of the respondent to the award that the Arbitrator has gone beyond his brief and has transgressed to the area that did not belong to him.

(3.) For instance, counter-claim no.1 which was on account of levy compensation under clause 2 of the agreement is entirely contrary to the scope of clause 2 of the agreement read with clause 25 as the item pertains to levy of compensation and it falls within the ambit of excepted matters as sub clause 25 makes the decision of the Superintending Engineer in this regard final, binding and not open to challenge either before the Arbitrator or before the Court.