Arbitration and Conciliation Act, 1996 – ss. 34 and 37 –
Exercise of powers u/s.37 – Scope of – High Court in appeal u/s.37
set aside the award passed by the arbitrator as well as the order
passed by the first appellate Court-Additional District Judge–On
appeal, held: An award can be set aside only if it is against the
public policy of India –The award can be set aside u/ss. 34/37, if it
is found to be contrary to fundamental policy of Indian Law; or the
interest of India; or justice or morality; or if it is patently illegal –
None of the aforesaid exceptions are applicable to the facts of the
present case –In appeal u/s.37, the High Court entered into the
merits of the claim which is not permissible– It decided the appeal
u/s.37 as if it was deciding the appeal against the judgment and
decree passed by the trial Court – High Court exercised the
jurisdiction not vested in it u/s.37– Impugned judgment of High
Court set aside – Award passed by the arbitrator and the order
passed by the Additional District Judge u/s.34 overruling the
objections are restored