The effect of an award no doubt is that the parties cannot appeal against it as to its merits and the court cannot interfere with it on merits. The Supreme Court has observed:1 “An Arbitrator is a judge appointed by the parties and as such an award passed by him is not to be lightly interfered with.” The conclusion of an arbitrator on facts, even if erroneous in the opinion of the court cannot be interfered with.2 Where the view of the arbitrator is a plausible view and cannot be ruled as one which it is impossible to accept, the court should not substitute its own view in place of that of the arbitrator.3 But this does not mean that there is no check on the arbitrator’s conduct. In order, therefore, to assure proper conduct of proceedings, the law allows certain remedies against an award.4
Setting aside of an award means that it is rejected as invalid. 5 The court would be loath to interfere with the findings of an arbitrator on questions of fact.6 The court approached for setting aside cannot sit as a court of appeal and disturb the findings of fact recorded by the arbitrator after considering all the materials or record.7 The Supreme Court refused to interfere in the matter of the valuation of the assets of a dissolved partnership because the arbitrator accepted the report which was prepared in accordance with the method agreed to by the partners in the dissolution agreement and the objection was at a belated stage.8 Objections can be raised only by a person whose rights are curtailed by the award. 9
Cite this article:
Apoorva Neral, Amita Bais. Invalidity of Arbitration Agreement and Setting Aside of Award. Int. J. Rev. & Res. Social Sci. 2(1): Jan. – Mar. 2014; Page 78-84.