KN Segara JCA:

[1] The learned Arbitrator in his final award held that the respondent herein (Tenaga Insurance (Malaysia) Sdn Bhd) was not liable to the claimant/appellant herein (Crystal Realty Sdn Bhd) under any of the terms and conditions of the Commercial Motor Policy taken out by the claimant in respect of the Tadano Crane that was damaged on 28 January 1996. The claimant, dissatisfied with the said final award, applied to the High Court to remit and or set aside the said award on the ground that "the said award is bad on the face of it and/or that the principle therein stated as principle of law according to which the said arbitrator proffered to make his award is erroneously stated or applied."

[2] It is settled law that an arbitrator's award may be set aside for an error of law on the face of it. In order to be a ground for setting aside the award, an error of law on the face of the award must be such that it can be found in the award, or in a document actually incorporated with it, or that there is some legal proposition, which is the basis of the award, is erroneous. The principles that have to be applied are very succinctly set out in Halsbury's Laws of England , 4