Sep 30, 2021

SC holds that Arbitration Award Not Based on Evidence would be Patently Illegal

The Supreme Court in PSA SICAL Terminals Pvt. Ltd. v. Board of Trustees V.O. Chidambranar Port Trust Tuticorin[1] held that a Court is not expected to re-appreciate evidence or take on the role of an appellate Court under Section 34 of the Arbitration Act. A finding in an award based on no evidence or by ignorance of vital evidence would be perverse and liable to be set aside on ground of patent illegality. Further, rewriting a contract would amount to breach of fundamental principles of justice and would entitle the Court to interfere since such case would shock the conscience of the Court.


[1] 2021 SCC OnLine SC 508.




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