26 July 2021
Matter: Megha Enterprises and Ors. v. Haldiram Snacks Private Limited
Order dated: 15 April 2021.
Summary:
A petition was filed before Delhi HC (“DHC”) under the Arbitration and Conciliation Act, 1996 (“Indian Arbitration Act”) for setting aside the arbitral award rendered by an arbitral tribunal constituted by a sole arbitrator. The issues considered by the DHC was whether the arbitral tribunal had grossly erred in (a) evaluating the evidence led in the case; and (b) misapplying the provisions of section 18 of the Limitation Act, 1963.
With respect to evaluating the evidence led in the case, the DHC observed on contention of the petitioner, that the arbitral tribunal had grossly erred in accepting evidence without an affidavit (as required under the Indian Evidence Act, 1872 (“Evidence Act”)), cannot be accepted because Evidence Act is not applicable to proceedings before an arbitrator and no such objection was taken by the petitioners at the appropriate stage before the arbitrator. The DHC held that the scope of examination of an arbitral award under the Indian Arbitration Act is extremely limited and therefore, the DHC cannot undertake the exercise of re-appreciation of evidence on the ground of patent illegality.
With respect to misapplying the provisions of the Limitation Act, 1963 the DHC observed that the arbitral tribunal had examined the question of limitation in detail. On evaluation of evidence led before the arbitral tribunal, it observed that the email and the letter clearly confirmed that the outstanding was due and payable. Further, it also observed that the witness of the respondent herein too had acknowledged the payment.
Accordingly, the DHC held that as an award can be challenged only under the limited grounds mentioned under the Indian Arbitration Act even if the evaluation of evidence by the arbitral tribunal may be erroneous and the court may take a different view, the court cannot interfere with the arbitral tribunal merely on the ground that it does not concur with the inference drawn by the arbitral tribunal from the evidence led by the parties.
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law
al@acuitylaw.co.in
