Some excerpts of the decisions given by the Indian courts on arbitration:
1. In case of errors apparent on the face of the award it can only be set aside if in the award there is any wrong proposition of law which is apparent on the face of the award , namely , in the award itself or any document incorporated in the award .
2. If relevant evidence is altogether ignored or wholly irrelevant evidence is considered, it would be a case of misconduct on the part of the arbitrator.
3. When the reference made to arbitrator is challenged at threshold ,i.e., the propriety of reference itself is at issue before court , the mere submission of no claims certificate by contractor or any similar document by him ,may not be construed as absolute bar to invocation of arbitration clause .
4. An arbitrator is a prisoner of the contract entered between the parties and he has to abide by terms of the contract which was entered into between the parties.
5. No doubt a court is entitled to interfere if the contractual clause is not followed by the arbitrator , but where the clause is such that two interpretations are possible then the arbitrator is entitled to adopt one of the possible interpretations,
6. “All or certain disputes” between parties having defined legal relationships whether “contractual or not” can be submitted to arbitration.
7. Where an arbitrator has completely ignored the evidence brought on record by one or other party in the making of his award the award so made does call for interference by the court where it appears that the evidence was relevant and material.
8. Where the arbitrator does not apply the terms of the contract for determining damages and gives damages on the basis of his experience, such an award cannot be upheld
9. When no specific question of law is referred to the arbitrator, the decision of the arbitrator on the question of law ,framed by him and decided by him ,would not be final, however ,much it may be within his jurisdiction and indeed essential for him to decide the question incidentally
10. The arbitration in no uncertain terms is an adjudication process which an arbitral tribunal performs in accordance with law while mediation is a conflict resolution method where a neutral person facilitates discussion between the parties in an attempt to get the parties to reach an agreement that is mutually agreeable to both the parties
11. If the reasons given are in adequate then at best the award becomes a non speaking award , but after all if the arbitrator or umpire can pass a non-speaking award ,then ,no fault can be found with an award on the ground that the reasoning is absent or lacking or inadequate .
12. Under the Arbitration and Conciliation Act, 1996, the parties are at liberty to choose as who will be the arbitrator to adjudicate the disputes for them, what will be the place of the arbitration.
13. The arbitrator can decide the matter arising out of the contract even after expiry thereof, if reference is o be made to the said contract to determine the claim raised.
14. The arbitrator having once taken decision and rejected the objection with regard to the jurisdiction and observed that there is existence or arbitration agreement between the parties and proceeded accordingly, such order cannot be challenged except the remedy as available under section 34 and or section 37 of the arbitration and conciliation act, 1996.
15. After making the claim before the arbitral tribunal and being a party to the proceedings and obtaining an award on the question of limitation, by no stretch of imagination, the appellant could be allowed to make an application seeking extension of time to refer the matter to arbitration.