Gujrat High Court Sets Aside Order Of District Judge Which Interfered With Arbitration Award

The Gujarat High Court, presided over by Chief Justice Sunita Agarwal and Justice Aniruddha P. Mayee, upheld an arbitral award pertaining to disputes arising from a construction contract for Multi-storied "D-Type" residential units at ONGC Township, Vadodara. David Parker Construction Ltd, the respondent, had contested claims made by ONGC (the appellant) through arbitration. The arbitrator partially upheld the respondent's claims while granting the appellant's counter-claim for issues like liquidated damages and price escalation overpayment. The respondent challenged the award, which was set aside by the District Judge, Vadodara. The High Court ruled that the District Judge's decision to set aside the award exceeded permissible grounds under Section 34 of the Arbitration Act, as it amounted to impermissible re-evaluation of evidence. It emphasized that reasoned interpretations of contractual terms in arbitral awards deserve substantial deference and overturned the lower court's judgment, affirming the arbitrator's decisions.