Construction Of Terms Of Contract Must Be Primarily Decided By Arbitrator, Not Court U/S 34 Of Arbitration Act: Delhi High Court

The Delhi High Court recently clarified that the interpretation of contractual terms should be primarily dealt with by an arbitrator and not by the court under Section 34 of the Arbitration Act. The case involved a dispute where the parties contested the construction of specific terms in their contract. The court held that the arbitrator has the expertise to resolve such matters and that judicial interference is limited to situations where the arbitral award is in violation of public policy or law. Thus, the court emphasized respecting the arbitrator's authority and jurisdiction in determining contract terms during arbitration.