Arbitral Award In Violation Of Contractual Bar Is Patently Illegal: Calcutta High Court

The Calcutta High Court ruled that an arbitral award barring contractual performance due to its illegality was patently illegal. The court found that the arbitrator exceeded authority by imposing a penalty not specified in the contract, violating fundamental principles of contract law. The decision underscores the importance of arbitrators adhering strictly to contractual terms and not altering substantive rights. This case highlights the judiciary's role in safeguarding contractual integrity in arbitration.