Friday 28 October 2016

Whether arbitrator can pass award contrary to tender conditions?

The finding of the learned arbitrator that the petitioners
having suffered no loss in view of the petitioners having awarded the
contract to some other contractor whose price bid was lower than the
bid of the respondents, is patently illegal and even otherwise based
on no evidence. In my view the said finding of the learned arbitrator
is also contrary to the principles of law laid down by the Supreme
Court in the above referred judgments. The learned arbitrator has
decided contrary to the terms of the tender documents which were
binding on the parties. The learned arbitrator cannot decide contrary
to and in ignorance of the tender conditions. The learned arbitrator
having decided contrary to the terms of the tender conditions and
thus the award is ex-facie in conflict with the public policy and
deserves to be set-aside on this ground also.
Bombay High Court
Maharashtra State Electricity ... vs Vijay Electricals Ltd on 4 February, 2015

Bench: R.D. Dhanuka
Citation:2016(5) ALLMR 74
Read full judgment here: click here
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