Arbitral Award Cannot Be Set Aside Merely On The Ground Of Erroneous Application Of Law Or Misappreciation Of Evidence : Supreme Court
Live LawThe Supreme Court, on Wednesday, held that apart from the grounds mentioned in Section 34 of the Arbitration and Conciliation Act, 2013, an arbitral award can be set aside only when it is vitiated by patent illegality, and not on ground of erroneous application of law or by misappreciation of evidence. A Bench comprising Justices Ajay Rastogi and Sanjiv Khanna allowed an appeal assailing the order of the Punjab and Haryana High Court, which had affirmed the order of the District Judge that the application under Section 34 of the Arbitration and the Conciliation Act, 1996 was, inter alia, barred by limitation. In April, 2012, the respondent filed an application under Section 11 of the Arbitration and Conciliation Act before the Punjab and Haryana High Court for appointment of an arbitrator. The Court was of the view that as per Section 34 an arbitral award can be set aside only when it is vitiated by patent illegality and if it satisfies the grounds enumerated under Section 34, but not merely on ground of erroneous application of law or by misappreciation of evidence.