AI Overview...
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Arbitrator as a Creature of Contract - The arbitrator is fundamentally a creature of the contractual agreement between parties. They derive their authority solely from the terms specified in the contract, and their powers and jurisdiction are limited to those explicitly or implicitly provided therein. If an arbitrator ignores or misinterprets contractual provisions, it constitutes a jurisdictional error, potentially justifying the setting aside of awards. Several sources emphasize that arbitrators must adhere strictly to the contractual terms, and deviations or violations can lead to awards being challenged or annulled. Central Warehousing Corporation Construction Cell VS P. Devendra Raju - Andhra Pradesh, K. MARAPPAN (DEAD) THROUGH SOLE LR. BALASUBRAMANIAN VS SUPERINTENDING ENGINEER T. B. P. H. L. C. CIRCLE ANANTAPUR - Supreme Court, V. Thyagarajan and Bros. , Engineers & Contractors VS Union of India - Andhra Pradesh, GOVERNMENT OF KARNATAKA VS SHETTY CONSTRUCTIONS COMPANY PRIVATE LIMITED - Karnataka, National Highways Authority of India VS Consulting Engineering Group Ltd. Jaipur (Ceg) - Delhi, SHARMA & ASSOCIATES CONTRACT (P) LTD. VS PROGRESSIVE CONSTRUCTIONS LTD. - Supreme Court, S. Satyanarayana & Co, Vishakhapatnam VS West Quay Multiport Private Limited, Mumbai - Bombay, Kamal Pushp Enterprises VS D. R. Construction Company - Supreme Court, Grid Corporation Of Orissa LTD. VS Balasore Technical School - Supreme Court
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Key Points:
- The arbitrator's authority is limited to the contract's scope (e.g., Sections 16(1)(c), 39(c) of the Arbitration Act).
- An arbitrator must interpret and apply the contract accurately; ignoring specific terms can be a jurisdictional error.
- Arbitrators cannot deviate from the contractual terms or act beyond their contractual mandate.
- Awards that overlook contractual provisions or are contrary to the contract can be challenged and set aside.
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The principle of party autonomy in arbitration underscores that the contract governs the arbitration process, and arbitrators are bound by it.
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Analysis and Conclusion - The consistent jurisprudence underscores that arbitration is inherently contractual. Arbitrators are not independent decision-makers but are bound by the contractual terms agreed upon by the parties. Their authority and jurisdiction are derived solely from the contract, and any breach of this principle—such as ignoring contractual provisions—can lead to the nullification of awards. Ensuring adherence to the contract preserves the integrity of arbitration as a dispute resolution mechanism, reinforcing that the arbitrator is indeed a creature of the contract.
Search Results for "Arbitrator is the Creature of Contract"
1993 0 Supreme(AP) 547 • India - Andhra Pradesh
MOTILAL B.NAIK, V.BHASKARA RAO
is a creature of contract and is bound by the terms of contract - Award of Arbitrator set aside and matter remitted back to arbitrator ... ARBITRATION ACT, Secs 16(1) (c) and (39) (c) - Contract providing that Arbitrator must give reasons in cases where total amount of ... exceeds Rs50,000 Passing of award without giving reasons amounts to error apparent on the face of record, thereby vitiates the award Arbitrator ... " ... ( 11 ) THE above observati....
2019 0 Supreme(SC) 365 • India - Supreme Court
RANJAN GOGOI, SANJAY KISHAN KAUL, K. M. JOSEPH
is creature of contract and he is bound by contract. ... Arbitration Act, 1940 – Sections 30 and 33 – Appeal against arbitral award – Contract ... , Arbitrator would have power to grant interest pendente lite – Entering upon reference is to be taken as date of commencement of ... Be that as it may, since the arbitrator is the creature of the contract, and therefore, he is bound by the contract, though late in the day, it may be, tha....
2010 0 Supreme(AP) 812 • India - Andhra Pradesh
GHULAM MOHAMMED, P.SWAROOP REDDY
is a creature of the contract – Both the parties agreed for appointment of Arbitrator whenever dispute arises in pursuance of the ... there is mis-interpretation or wrong interpretation or the Arbitrator travels beyond the terms of contract, it has to be held that ... – The Arbitrator also, while deciding the dispute has to interpret the terms of the contract to come to a correct conclusion – Wherever ... It is not in dispute that the Arbitrator is a....
2006 0 Supreme(Kar) 300 • India - Karnataka
S.ABDUL NAZEER, B.PADMARAJ
Abdul Nazeer, JJ]: An arbitrator is a creature of contract between the parties and hence if he ignores the specific terms of the ... contract, it would be a question of jurisdictional error. ... Arbitration and Conciliation Act, 1996 -Arbitrator -Section 11 -Arbitrator -Scope of his jurisdiction. [B. Padmaraj and S. ... ... ( 23 ) AN arbitrator is a creature of contract between the parties and hence if he ignores the specific terms....
2006 0 Supreme(Del) 1672 • India - Delhi
PRADEEP NANDRAJOG
time, notice of readiness, crane usage, and cargo weight clauses in the charter party agreement, as well as the authority of the arbitrator ... contracts. ... The court analyzes the legal principles related to the interpretation of contracts and the authority of arbitrators in applying contractual ... Where agreement between the parties admits of no two meanings and it is a simple case of applying the contractual terms, an arbitrator, being the creature of the contract#HL_END....
2023 0 Supreme(Del) 1430 • India - Delhi
CHANDRA DHARI SINGH
Arbitrator is a creature of the Contract and cannot deviate from it while adjudicating disputes. 4. ... The impugned Award is not contrary to the provisions of the Contract and Section 28(3) of the Act, 1996, as the Arbitrator considered ... Petitioner invoked the Arbitration Clause and appointed a Sole Arbitrator. ... By ignoring Clause 12 and 21 of the Contract and acting in derogation thereof, the Arbitrator has admittedly travelled beyond his jur....
2017 0 Supreme(SC) 123 • India - Supreme Court
A.K.SIKRI, R.K.AGRAWAL
is a creature of contract between parties and if he ignores specific term of contract, it would be a question of jurisdictional ... contract which was entered into between appellant and respondent, approach of Arbitrator is clearly perverse in justifying claim ... contract which was entered into between appellant and respondent, approach of arbitrator is clearly perverse in justifying claim ... On the contrary, the approach taken by the Division Bench of the High Cour....
2019 0 Supreme(Bom) 1569 • India - Bombay
G.S.PATEL
himself is a creature of contract. ... arbitration agreement - There is party autonomy in what they may decide between themselves and this must be respected by the Court - Arbitrator ... Arbitration is founded in contract and Garware Wall Ropes now tells us that such a contract is one and indivisible at least to the ... The arbitrator himself is a creature of contract. Arbitration is impossible without agreement. 23. ... The applicant called upon the....
2000 6 Supreme 259 • India - Supreme Court
J.JAGANNADHA RAO, DORAISWAMY RAJU
of dispute arising out of contract-Award filed suo moto in Court by arbitrator-Appellant raising objection contending that in view ... to the Arbitrator was at the instance of the appellant itself. ... contained in Section 69 has no application to proceedings before an arbitrator-Post award proceedings cannot be considered by any ... This decision which is based on the principle that the Arbitrator is a creature of the contract between the parties and a reference to t....
1999 3 Supreme 317 • India - Supreme Court
S.N.PHUKAN, S.RAJENDRA BABU
30 read with Section 33-Grounds for setting aside award-Award contrary to terms of contract-Would ... The courts are entitled to examine the contract even though the contract was not incorporated into the award and an Arbitrator being a creature of the contract must operate within the four corners of the contract and cannot travel beyond it either by misinterpreting the contract or otherwise. ... It was held that the Arbitrator bein....
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