Arbitrators must exercise in dealing with financial claims based on the mathematical derivations in the context of complex construction contracts, Errors of facts cannot be corrected, when a Court is applying the Public Policy test to an Arbitral Award – Satluj Jal Vidyut Nigam Ltd. Vs. M/s Jaiprakash Hyundai Consortium & Ors. – Delhi High Court
Hon’ble High Court set aside the impugned arbitral award and held that:
(i) this is in view of the settled legal position that interpretation of the contract is the domain of the arbitral tribunal and the same would not be interfered in proceedings under Section 34, as long as such interpretation is not ex-facie perverse. Further, in a situation when two interpretations are possible, the interpretation accorded by an arbitral tribunal would pass muster, if the view taken by the arbitral tribunal is a possible view, even if a more plausible interpretation is canvassed by the petitioner.
(ii) At this stage, it would be apposite to highlight the duty of care that Arbitrators must exercise in dealing with financial claims based on the mathematical derivations in the context of complex construction contracts. An arbitrator’s obligation of care, skill and integrity has been emphasized by the various authors and has also been judicially recognized.
