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2016 (3) TMI 1462

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..... y to the arbitral tribunal to resume the arbitral proceedings or to enable it to take such other action which will eliminate the grounds for setting aside the arbitral award. This provision (sub-section(4)) cannot be invoked, once the arbitral Award is set aside. The Court below has erred in law in setting aside the arbitral award without examining the matter as laid down in Section 34 of the Act - The matter is remitted to the Court of the Principal District Judge, Dharwad, for reconsideration in accordance with law - appeal disposed off. - H.G. Ramesh And G. Narendar, JJ. For the Appellant : K.G. Raghavan, Sr. Advocate, Gayatri Balu and Samudra Sarangi, Advs. for Khaitan and Co. For the Respondent: Anuradha Deshpande, .....

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..... tion without examining the matter as provided under Section 34 of the Act. He submitted that no power of remand is conferred on the Court under Section 34 of the Act. But the Court may, as provided under sub-section(4) of Section 34 of the Act, where it is appropriate and if it is so requested by a party, adjourn the proceedings for a period of time determined by it in order to give the arbitral tribunal an opportunity to resume the arbitral proceedings or to take such other action as in the opinion of the arbitral tribunal will eliminate the grounds for setting aside the arbitral award. In support of his submission, he relied on a decision of the Supreme Court in McDermott International Inc. v. Burn Standard Co. Ltd. [(2006) 11 SCC 181] an .....

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..... ion: Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the arbitral award which contains decisions on matters not submitted to arbitration may be set aside; or (v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a provision of this Part from which the parties cannot derogate, or, failing such agreement, was not in accordance with this Part; or (b) the Court finds that- (i) the subject-matter of the dispute is not capable of settlement by arbitration under the law for the time being in force, or (ii) the arbitral award is in conf .....

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..... [(2006) 11 SCC 181] relied on by the learned Senior Counsel: 52. The 1996 Act makes provision for the supervisory role of courts, for the review of the arbitral award only to ensure fairness. Intervention of the court is envisaged in few circumstances only, like, in case of fraud or bias by the arbitrators, violation of natural justice, etc. The Court cannot correct errors of the arbitrators. It can only quash the award leaving the parties free to begin the arbitration again if it is desired . So, the scheme of the provision aims at keeping the supervisory role of the court at minimum level and this can be justified as parties to the agreement make a conscious decision to exclude the court's jurisdiction by opting for arbitration .....

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