V.G.GEORGE versus INDIAN RARE EARTHS LTD. AND ANR.

V.G.GEORGE versus INDIAN RARE EARTHS LTD. AND ANR.

The arbitrator awarded amounts under claims which were beyond the scope of the agreement (specifically, compensation for obstruction and escalation in wages where no such contractual provision existed). The High Court was right in setting aside the award on grounds of legal misconduct.

Parties
Appellant: V.G. George; Respondent No. 1: Indian Rare Earths Ltd.; Respondent No. 2: Respondent No. 2 (Arbitrator)
Jurisdiction
India
Judgment Date
08 April 1999
Procedural Posture
Civil Appeal / Supreme Court Appeal From the Kerala High Court Judgment Dated 25.05.1987 in M.f.a. No. 161 and 781 of 1986
Outcome
Appeal dismissed
Legal Topics
Misconduct by Arbitrator, Scope of Arbitrator's Jurisdiction, Award Beyond Contract, Escalation Clause, Non Speaking Award, Legal Misconduct
Arbitration Misconduct by Arbitrator Scope of Arbitrator's Jurisdiction Award Beyond Contract Escalation Clause Non Speaking Award Legal Misconduct

Case Brief

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Parties

V.G. George

Appellant

Indian Rare Earths Ltd.

Respondent No. 1

Respondent No. 2 (Arbitrator)

Respondent No. 2

Procedural Posture

Civil Appeal / Supreme Court Appeal From the Kerala High Court Judgment Dated 25.05.1987 in M.f.a. No. 161 and 781 of 1986

Legal Issues

  1. 1 Whether the arbitrator's award was beyond the scope of the agreement and amounted to misconduct under Section 30(a) of the Arbitration Act, 1940
  2. 2 Whether the award of a claim relating to obstruction by landowners and local public was permissible under the agreement
  3. 3 Whether the arbitrator could award escalation when the agreement contained no escalation clause

Ratio Decidendi

The arbitrator awarded amounts under claims which were beyond the scope of the agreement (specifically, compensation for obstruction and escalation in wages where no such contractual provision existed). The High Court was right in setting aside the award on grounds of legal misconduct.

Court Disposition

Appeal dismissed

Orders

  • Award set aside except for refund of earnest money to appellant
  • Each party to bear its own costs