New Delhi: The arbitration award can be set aside only if the award oppose Indian public policy, the Supreme Court said.
Judge M R Shah and B V Nagarathna said the award could be set aside based on the arbitration law, if found contrary to the fundamental policy of Indian law, the interests of the state, justice or morality or if it was illegal.
The upper Court to hear the appeal submitted by Haryana Tourism Ltd against the Punjab and Haryana High Court orders which set aside award 2005 authorized by the Arbitrator and the orders passed by additional district judges, Chandigarh.
Haryana Tourism Limited (HTL) has invited tenders / quotes for supply of cold aeration drinks in the tourist and tender complex submitted by Kandhari drinks accepted.
HTL then stopped the contract after the dispute appeared between the parties and the problem was referred to as a single arbitrator.
Arbitrator directs Kandthari drinks to pay Rs 9.5 lakh while the claim counter submitted by IT claimed Rs 13.92 lakh fired by arbitrators.
Kandthari drinks after that submitted an additional objection of district judges, Chandigarh under Section 34 of the actions of arbitration against the award passed by the arbitrator.
Additional district judges reject the appeal / objection after that submit a further application before the High Court below section 37 of the Arbitration Law.
The High Court allows the appeal by entering into claims services and has canceled and set aside awards passed by the Arbitrator and orders passed by additional district judges, Chandigarh.
The Apex Court said the High Court had run jurisdiction that was not in it under section 37 of the arbitration law.
“Remembering the things above and for reasons stated above, the current appeal is successful.” Judgment and commands derived are passed by the High Court with this canceled and set aside.
This award was passed by arbitrators and orders passed by additional district judges below Section 34 of the arbitration laws that submit objections to this restored, “said the bench on January 11.” Award can only be set aside if the award is against Indian public policy, ” He said.