Arbitration award --- Grounds for setting aside Award --- Misconduct by Arbitrator --- Meaning --- Misconduct of an Arbitrator in the judicial sense means failure to perform his essential duty or any conduct inconsistent with his duties , resulting in substantial miscarriage of justice between the parties

 2023 SCMR 1103

Arbitration award --- Grounds for setting aside Award --- Misconduct by Arbitrator --- Meaning --- Misconduct of an Arbitrator in the judicial sense means failure to perform his essential duty or any conduct inconsistent with his duties , resulting in substantial miscarriage of justice between the parties .

Frivolous and vexatious litigation --- Abusing process of the Court --- Costs , imposition of --- Petitioner had dragged the Award in the courts for over 10 years , which passed for vexatious litigation ; wasting the time of all courts below as well as the Supreme Court - Such frivolous litigation clogged the pipelines of justice causing delay in deciding genuine claims pending before the Supreme Court ; and added to the pendency of cases which over - burdened the Court dockets and slowed down the engine of justice --- Such vexatious and frivolous litigation must be dealt with firmly and strongly discouraged --- Supreme Court imposed costs on the petitioner in the sum of Rs . 300,000 / - with the direction that the same shall be paid to the respondent within a month and in case of its failure to pay the said costs , the same shall be recoverable as a money decree -

Arbitration award --- Interference by Courts --- Scope --- Limited scope of judicial review of an Award announced by an Arbitrator stated .

The arbitrator alone is the judge of the quality as well as the quantity of the evidence . He is the final arbiter of dispute between the parties . He acts in a quasi - judicial manner and his decision is entitled to utmost respect and weight . Court is not supposed to sit as a court of appeal and make a roving inquiry and look for latent errors of law and facts in the Award . The arbitration is a forum of the parties ' own choice its decision should not be lightly interfered by the court , until a clear and definite case within the purview of the section 30 of the Arbitration Act , 1940 is made out .

An arbitration Award is a final determination of the dispute between the parties . The grounds for challenging an Award are very limited . There are three broad areas on which an arbitration Award is likely to be challenged i.e. firstly , jurisdictional grounds ( non - existence of a valid and binding arbitration agreement ) ; secondly , procedural grounds ( failure to observe principles of natural justice ) and thirdly . substantive grounds ( arbitrator made a mistake of law ) .

The review of an arbitration Award cannot constitute a re assessment or reappraisal of the evidence by the court . An over - intrusive approach by courts in examination of the arbitral Awards must be avoided . The court is not supposed to sit as a court of appeal and must confine itself to the patent illegalities in the Award , if any . The jurisdiction of the Court under the Arbitration Act , 1940 is supervisory in nature . Where two findings are possible the Court cannot interfere with the Award by adopting its own interpretation . Interference is only . possible if there exists any breach of duty or any irregularity of action which is not consistent with general principles of equity and good conscience .