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2020 (11) TMI 77 - HC - Indian LawsGrant of Arbitral Award - Section 37 of the Arbitration and Conciliation Act, 1996 read with Section 13 of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 - CENVAT Credit - Appellant refused to make any payment to the Respondent until necessary documents were submitted by the latter to confirm that the entire guaranteed amount towards CENVAT credit would be passed on to the Appellant - HELD THAT:- The Supreme Court in the case of Associate Builders v. Delhi Development Authority [2014 (11) TMI 1114 - SUPREME COURT] has elaborately laid down the scope of jurisdiction of the Court to interfere with the arbitral award while exercising power under Section 34 of the A&C Act. The Supreme Court had observed that only the grounds specifically provided in Section 34 of the A &C Act can be relied upon to interfere with an arbitral award and held that the Court would be justified in interfering with the merits of the award only when it is purported to be in conflict with the public policy of India. The Court also considered different types of heads falling under the scope of ‘public policy’ in India, which inter alia includes patent illegality. It was further observed that the Arbitral Tribunal must decide the dispute between the parties in terms of the contract and the construction of the terms of the contract is primarily for an Arbitrator to decide and must not be interfered with, unless the Arbitrator construes the contract in such a way that it could be said to be something that no fair minded or reasonable person could do. In the said judgment, the Court has further observed that when a Court is applying the ‘public policy’ test to an arbitral award, it does not act as a court of appeal and consequently errors of fact cannot be corrected. A possible view by the Arbitrator on facts must necessarily pass muster as the Arbitrator is the ultimate master of the quantity and quality of evidence to be relied upon when he delivers his arbitral award. Appeal dismissed.
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