DAMODAR PERSHAD GUPTA Vs. SAXENA AND CO DELHI

JUDGEMENT

(1.) THIS appeal under Clause 10 of the Letters Patent raises the question whether the learned Single Judge was justified in setting aside an award on the ground that the defendant was not afforded a reasonable opportunity of being heard before the arbitrator.

(2.) DURING the course of a protracted litigation, the parties agreed to refer the matters in controversy between themselves to arbitration, by means of a submission which was in the following terms :

(3.) AN arbitration is an extra judicial determination of a controversy by one or, more unofficial persons chosen by the parties as a domestic tribunal for the purpose of settling the disputed matter submitted to it for decision and award. It provides a summary and inexpensive method of settling disputes and is encouraged by the Courts because of its economy, freedom from technicalities and business-like method of resolving differences. Every arbitration agreement must be liberally construed so as to give effect to the intention of the parties and every award must be considered regular, if on the face of it, it is unimpeachable. Every presumption must be made to sustain the award. AN arbitrator's decision will not beset aside because of the admission of illegal evidence, nor for an error in judgment provided he acts honestly and fairly according to such abilities as he may possess. If however, he fails to exercise a high degree of judicial impartiality, or if his conduct is indicative of unfairness and bias, his award may be set aside on the ground of judicial misconduct.