In Pakistan, courts have not been empowered to revise and consider award on merits. However, courts have been empowered to modify, remit and set aside award on certain conditions. As far as remission of award is concerned, court can from time to time remit award or any matter, which has been referred to arbitration, to arbitrators or umpire for reconsideration upon those terms, which it thinks fit.
(2) Section No. 16 Of Arbitration Act
Following points are important for explanation of Section No. 16 of Arbitration Act:
(i) Grounds for remission of award
(ii) What is to be done by arbitrator or umpire?
(iii) Fixing & extension of time
(iv) Failure of arbitrator or umpire
(i) Grounds For Remission Of Award
Followings are ground on which court can remit award or any matter, which has been referred to arbitration:
(a) When matter, which has been referred, has remained undetermined
(b) Determination of matter, which has not been referred
(c) Indefinite award
(d) Objection to legality of award
(a) When Matter, Which Has Been Referred, Has Remained Undetermined
Court can remit award or any matter, which has been referred to arbitration, when award has left undetermined any of those matters, which have been referred to arbitration.
(b) Determination Of Matter, Which Has Not Been Referred
Court can remit award or any matter, which has been referred to arbitration if award determines any matter, which has not been referred to arbitrate and such matter cannot be separated without affecting determination of those matters, which have been referred to arbitration.
(c) Indefinite Award
Court can remit award when award is so indefinite that it is incapable of execution.
(d) Objection To Legality Of Award
Court can remit award if an objection to legality of award is apparent upon the fact of it.
(ii) What Is To be Done By Arbitrator Or Umpire?
When award is remitted to arbitrator or umpire, arbitrator or umpire is to submit his/her decision to court.
(iii) Fixing & Extension Of Time
If award is remitted to arbitrator or umpire, court is to fix that time within which arbitrator or umpire is to submit his/her decision to court. However, this fixed time can be any time extended by subsequent order of court.
(iv) Failure Of Arbitrator Or Umpire
Award, which is remitted, becomes void when arbitrator or umpire fails to reconsider it and submit his/her decision within fixed time.
To conclude, it can be stated that court is though empowered to examine basic legal infirmities of award before making it rule of court, yet court is not to proceed to discover error in award to remit it. In fact, court can remit award only when it is suffering from some patent infirmity, which has been specified in Section No. 16 of Arbitration Act.