Scope of Section 34 of Arbitration and Conciliation Act, 1996
Court while hearing objections under the scope of section 34 of the arbitration act cannot interfere unless the findings and conclusions of the arbitrator are totally perverse and illegal. Perversity of the award goes to the root of the matter without there being a possibility of alternative interpretation which may sustain the arbitral award. Perversity or irrationality of decisions is tested on the touchstone of Wednesbury principle of reasonableness. Decisions that fall short of the standards of reasonableness are open to challenge in a court of law often in writ jurisdiction of the superior courts but no less in statutory processes wherever the same are available. Intervention of the courts is envisaged in few circumstances only like in case of fraud or bias by the arbitrators; violation of principal of natural justice etc. courts can correct the error of arbitrator. An award contrary to substantive provisions of law or the provisions of Arbitration and conciliation Act, ...