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2003 (10) TMI 384 - SUPREME COURTWhether jurisdiction of an arbitrator to interpret a contract can be subject-matter of an objection under section 30 of the Arbitration Act, 1940? Held that:- Appeal allowed. Judgment of the High Court is not sustainable. The Court, having regard to the proposition of law that the jurisdiction of the arbitrator will be ousted only in the event that there exists a specific bar in the contract as regard raising of a particular claim must necessarily hold that the award was sustainable. As in the instant case there did not exist any such bar, it is enforceable in law. Furthermore, in the event the ratio of the decision of the High Court is accepted, the same would amount to re-hearing of the entire arguments once over again by the Court as regard construction of a contract which is impermissible in law. The arbitrators were called upon to determine a legal issue which included interpretation of the contract. The arbitrators, therefore, cannot be said to have been travelled beyond jurisdiction to making the award.
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