Account Statements And IT Returns Relied On By Arbitral Tribunal, Have Evidentiary Value : Delhi High Court
Live LawThe Delhi High Court has ruled that the arbitral award cannot be set aside on the ground that the material relied upon by the Arbitral Tribunal does not measure up to the standards under the Indian Evidence Act, 1872. The Commercial Court held that the Arbitral Tribunal had grossly erred in relying on the Income Tax Return and the bank statements furnished by the respondent, since the same were not supported by a certificate under Section 65B of the Indian Evidence Act, 1872. The respondent/lessor Kanta Batra challenged the order of the Commercial Court on the ground that the Commercial Court had re-appreciated the evidence regarding the quantification of damages awarded to the respondent by the Arbitral Tribunal, which was being beyond the scope of Section 34 of the A&C Act. Ruling that the Bank Account statements relied on by the lessor were relevant material, the Court held that the award passed by the Arbitral Tribunal, by relying upon the said bank statements and the Income Tax Return, as furnished by the lessor, cannot be said to be an unreasoned award or an award based on no evidence.