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1999 (9) TMI 770 - SC - Indian LawsWhether the award is bad as the learned sole Arbitrator failed to apply his mind to documents and decide the dispute on per unit basis? Whether the arbitrator has exceeded his jurisdiction? Did the Arbitrator fail correctly to consider clauses 17 and 18 of the Agreement and the Contract Labour (Abolition and Regulation) Act, 1970? Did the Arbitrator fail to apply his mind to consider pleadings, documents and evidence? Held that:- Appeal allowed. The award passed by the arbitrator is against the stipulations and prohibitions contained in the contract between the parties. In the present case, there is no question of interpretation of clauses 17 & 18 as the language of the said clauses is absolutely clear and unambiguous. Even the contractor has admitted in his letter demanding such claims that the contract was signed with clear understanding that the rate under the contract was firm and final and no escalation in rates except in case of diesel would be granted. Hence, by ignoring the same the arbitrator has travelled beyond his jurisdiction. It amounts to deliberate departure from the contract. Further, the reference to the arbitrator is solely based upon the agreement between the parties and the arbitrator has stated so in his interim award that he was appointed to adjudicate the disputes between the parties arising out of the agreement. No specific issue was referred to the arbitrator which could confer jurisdiction on the arbitrator to go beyond the terms of the contract. Hence, the award passed by the arbitrator is, on the face of it, illegal and in excess of his jurisdiction which requires to be quashed and set aside.
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