M/S COCHIN SHIPYARD LTD. versus M/S APEEJAY SHIPPING LTD.

M/S COCHIN SHIPYARD LTD. versus M/S APEEJAY SHIPPING LTD.

Objections to arbitral awards under Section 30 of the Arbitration Act, 1940 for legal misconduct of the arbitrator can only be substantiated from the records of the arbitral proceedings and not through oral evidence before the court. Examination of witnesses in court for this purpose is impermissible.

Parties
Appellant: M/S COCHIN SHIPYARD LTD.; Respondent: M/S APEEJAY SHIPPING LTD.
Jurisdiction
India
Judgment Date
06 November 2015
Procedural Posture
Civil Appeal / Judgment on Appeal From High Court Order in O.p. (c) No. 482 of 2013, Kerala High Court
Outcome
Appeal partly allowed
Legal Topics
Objection to Arbitral Award, Legal Misconduct of Arbitrator, Scope of Evidence Under Section 30 of Arbitration Act, 1940
Arbitration Objection to Arbitral Award Legal Misconduct of Arbitrator Scope of Evidence Under Section 30 of Arbitration Act, 1940

Case Brief

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Parties

M/S COCHIN SHIPYARD LTD.

Appellant

M/S APEEJAY SHIPPING LTD.

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From High Court Order in O.p. (c) No. 482 of 2013, Kerala High Court

Legal Issues

  1. 1 Whether objections under Section 30 of the Arbitration Act, 1940 alleging legal misconduct of the arbitrator can be substantiated by oral evidence in court or must be demonstrated from arbitral records
  2. 2 Distinction between legal misconduct and moral misconduct under Section 30 of the Arbitration Act, 1940

Ratio Decidendi

Objections to arbitral awards under Section 30 of the Arbitration Act, 1940 for legal misconduct of the arbitrator can only be substantiated from the records of the arbitral proceedings and not through oral evidence before the court. Examination of witnesses in court for this purpose is impermissible.

Court Disposition

Appeal partly allowed

Orders

  • Permission granted by the High Court to examine any witness in court to substantiate legal misconduct is set aside.
  • The civil court is to requisition records from the learned arbitrator, and the respondent may advance arguments concerning misconduct based on those records.