On what grounds award can be set aside under Arbitration Act?

(1) Introduction

In Pakistan, courts have not been empowered to revise award on merits. However, courts have been empowered to modify, remit and set aside award on basis of certain conditions. As far as setting aside of award is concerned, parties to arbitration agreement have been granted opportunity to challenge or dispute award. To challenge or dispute award, they are required to file application for setting aside award. And this application should be filed within that limitation-period, which Limitation Act has prescribed in this regard.

 (2) Grounds For Setting Aside An Award

Followings are grounds for setting aside an award:

(i) Misconduct of arbitrator or umpire

(ii) Misconduct in arbitration proceedings

(iii) Making of award after supersession of arbitration

(iv) Making of award after arbitration proceedings become invalid

(v) Improper obtaining of award

(vi) Invalid award

 

(i) Misconduct of arbitrator or umpire

Award can be set aside when arbitrator or umpire has misconducted himself/herself.

(ii) Misconduct In Arbitration Proceedings

Award can be set aside if arbitrator or umpire has misconducted arbitration proceedings.

(iii) Making Of Award After Supersession Of Arbitration

Award can be set aside when court has already ordered to supersede arbitration.

(iv) Making Of Award After Arbitration Proceedings Become Invalid

Award can be set aside if arbitration proceedings have already become invalid under Section No. 35 of Arbitration Act.

(v) Improper Obtaining Of Award

Award can be set aside when award is improperly procured.

(vi) Invalid Award

Award can be set aside if award is otherwise invalid.

(3) Conclusion

To conclude, it can be stated that making of and taking of evidence in absence of parties to arbitration agreement amount to misconduct. Therefore, award can be set aside on these grounds. Even unreasonable delay is also considered that ground on which award can be set aside. However, role of court is supervisory in nature and its power is discretionay as far as setting aside of award is concerned.

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