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The Himachal Pradesh High Court has underscored the limited scope of judicial review in cases involving arbitral awards. In the recent case of National Highways Authority of India v. Rajesh Kaptyaksh, the court emphasized the importance of a conservative approach when reviewing such awards, emphasizing that courts must confine their scrutiny to the grounds explicitly outlined under Section 34 of the Arbitration and Conciliation Act, 1996 (A&C Act).
This principle stems from the recognition that parties voluntarily choose arbitration as a dispute resolution mechanism, opting out of the traditional court system. This choice signifies a preference for a more specialized and potentially expedited process. Consequently, courts must be circumspect in their role, avoiding undue interference with the findings of the arbitral tribunal. The High Court highlighted that mere disagreement with the arbitral tribunal's factual findings or interpretation of the contract does not justify overturning its decision.
The court further clarified that the scope of appeal under Section 37 of the A&C Act is even narrower than that of Section 34. This signifies the limited role of courts in reviewing arbitral awards. The court's decision underscores a key principle of arbitration: finality. By limiting judicial review, the court encourages parties to accept and respect the findings of the arbitral tribunal, promoting efficiency and certainty in dispute resolution.
In the specific case before the court, the dispute involved land acquisition by the National Highways Authority of India (NHAI). The landowners had appealed the arbitral award, seeking a higher valuation of their property. However, the High Court upheld the District Judge's decision to dismiss the NHAI's appeal, finding no grounds for judicial intervention. The court noted that the District Judge had thoroughly reviewed the award and the appellant's arguments, ultimately concluding that there was no basis to overturn the award under Section 34 of the Arbitration Act.