ISSUE:
What is the standard of review that the judiciary should apply to decide a challenge application to the validity of an arbitral award passed under the Arbitration and Conciliation Act, 1996?
RULE:
An arbitral award cannot be reviewed by the court under Section 34 merely on the ground that the court’s opinion on the law or facts is different. The power under Section 34 is not an appellate award and is restricted to the grounds mentioned in the Act.
An arbitrator is not empowered to presume agreements and must rely on the agreements explicitly agreed on by the parties to the dispute to avoid potential challenges to the award on the ground of misinterpretation of the contractual terms.