S.34 Arbitration Act | Award Can Be Set Aside Only On Specific Grounds Mentioned In Provision: Punjab & Haryana High Court

It is a settled position of law that award under Section 34 of the Arbitration Act can be set aside only on the basis of specific grounds contained therein.

The bench comprising Justice Lisa Gill further added that the Court cannot sit in appeal when plausible and reasonable view is taken by the Arbitrator on the basis of the evidence, even if a separate view is possible.

This Court is not to sit as a Court of Appeal and in case plausible and reasonable view has been taken by the Arbitrator on the basis of the evidence on record, the same is not to be interfered, even if a separate view is possible which in any case is not the scenario in the instant case.

The court was dealing with a case where appellant invited tenders for construction and tender of Respondent No. 1 was accepted but Respondent no. 1 expressed its inability to undertake the allotted work. Fresh tenders were called and the work was given on a higher rate than the one on which respondent No. 1 was supposed work. Hence, the appellant suffered loss and invoked Arbitration clause. His petition under Section 34 of the Arbitration Act got rejected and the appellant preferred present appeal.

The court while dealing with the case placed reliance on NTPC Ltd. versus M/s Deconar Services Pvt. Ltd. 2021 AIR (Supreme Court) 2588 wherein it was held that mere existence of another reasonable interpretation is not sufficient to allow interference.

Section 34 provides that an arbitral award may be set aside by the Court only if— (a) the party making the application furnishes proof that it was under some incapacity, or the arbitration agreement is not valid under law or the party making the application was not given proper notice of the appointment of an arbitrator; or the arbitral award deals with a dispute not contemplated by the terms of arbitration, or the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement or (b) if the Court finds that— (i) the subject-matter of the dispute is not capable of settlement by arbitration under the law, or (ii) the arbitral award is in conflict with the public policy of India.

The court concluded that the appellant in the instant case has failed to make out a case for setting aside the Award. Appeal being devoid of any merit was accordingly dismissed by the court.

Case Title: The Punjab State Cooperative Supply and Marketing Federation Limited Versus M/s B.D.S. Decor & Prefab (P) Ltd. and another