Award Debtor Failed To Take Recourse To S. 26 of Arbitration Act; Cannot Challenge Award Claiming Expert Was Not Examined: Bombay High Court
2 years, 1 month ago

Award Debtor Failed To Take Recourse To S. 26 of Arbitration Act; Cannot Challenge Award Claiming Expert Was Not Examined: Bombay High Court

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The Bombay High Court has ruled that if an award debtor has failed to take recourse to the provisions of Section 26 of the Arbitration and Conciliation Act, 1996, it cannot seek to set aside the award on the ground that the expert, whose report was relied upon by the arbitrator, was not examined by the opposite party. The petitioner, Zenobia Poonawala, challenged the award by filing a petition under Section 34 of the A&C Act before the Bombay High Court. The High Court thus concluded: “In the facts of the present case, this Court is of the opinion that the respondents are justified in relying upon the above-quoted provision, to oppose the contentions raised on behalf of the petitioner, as regards the report of the auditor.” While holding that the provisions of Section 26 of A&C Act were applicable to the case, the bench said, “.if the petitioner so desired, she could have requested the learned arbitrator to call the auditor to participate in the hearing, where the petitioner could have put questions to the auditor, under sub-section of Section 26 of the said Act. In fact, the petitioner could have presented expert witnesses, in order to testify on the points at issue.” The Court added that the petitioner, having failed to take recourse to the provisions of Section 26, cannot claim that the respondents ought to have examined the auditor, before the arbitrator could take the auditor’s report into consideration.

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