A and B refer a dispute to an arbitral tribunal. The tribunal passes an award but both parties think that the tribunal has taken an incorrect view of an applicable point of law. Can the parties approach the court to appeal against this order ?

All India Bar Examination (AIBE) 3-III Previous Year Question Papers with Answers

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A and B refer a dispute to an arbitral tribunal. The tribunal passes an award but both parties think that the tribunal has taken an incorrect view of an applicable point of law. Can the parties approach the court to appeal against this order ?

Principle:

The arbitrator's award cannot be challenged on the ground that an alternative view of the law is possible. The limited grounds for setting aside an arbitral award include the incapacity of a party, the invalidity of the agreement, the award being beyond the scope of reference, and the award being in conflict with public policy.

A: No unless they argue that the award is against public policy.

B: Yes, because court may support their alternative view of the law.

C: Yes, but only because both parties agree that the tribunal's award is incorrect.

D: Yes, but only if the arbitral award makes the award appealable.

E: Yes, but only as a fresh suit, and not as an appeal from the arbitral award.

The answer is: A

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Explanation

The correct option is A: No unless they argue that the award is against public policy.

Explanation:

In arbitration, the principle of finality and limited grounds for setting aside an arbitral award are generally followed. This means that parties cannot usually appeal an arbitral award simply because they believe the tribunal has taken an incorrect view of the applicable point of law.

The principle mentioned in the question is accurate. Arbitrators' awards cannot be challenged on the ground that an alternative view of the law is possible. The limited grounds for setting aside an arbitral award typically include issues such as incapacity of a party, invalidity of the agreement, the award being beyond the scope of reference, and the award being in conflict with public policy.

Therefore, parties cannot approach the court to appeal against the arbitral award solely based on their belief that the tribunal has taken an incorrect view of the law. To appeal an arbitral award, they would generally need to demonstrate that the award falls within one of the limited grounds for setting it aside, such as it being against public policy.

Option A correctly reflects this principle, as it suggests that parties may approach the court to appeal against the award only if they argue that it is against public policy, which is one of the limited grounds for challenging an arbitral award.