Court not to substitute Arbitrator’s view by its own unless error apparent on the face of record #indianlaws

In considering objections to the Award passed by an Arbitrator, the Court is not justified in reappraising the material on record and substituting its own view in place of Arbitrator’s view.

Dispute between the parties was referred to the Arbitrator for adjudication in view of the agreement containing arbitration clause, between the parties. The award after having been decided by Arbitrator was published followed by objections against the said award.

It was observed and held by the Apex Court that in an arbitration award the scope of Courts interference is very limited. Court is not justified in reappraising the material on record and substituting its own view in place of Arbitrator’s view. If there is an error apparent on the face of record or where the Arbitrator has not followed the statutory legal position, only then Court would be justified in interfering with the award published by the Arbitrator. Once the Arbitrator has applied his mind in the matter before him, the Court cannot reappraise the matter as if it were an appeal and even if two views are possible the view taken by the Arbitrator would prevail.

[Navodaya Mass Entertainment Ltd. vs. J.M. Combines] 
(SC, 26.08.2014)