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RU
Allahabad HC: Arbitrator Cannot Award Claims Beyond Contractual Reference
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taxguruin
Accordingly, the Arbitrator had exceeded the scope of the reference by allowing the Rs.6,12,000/- security claim and the associated Rs.9,456/- bill.
This newly appointed Sole Arbitrator started the proceedings afresh taking it forward from the stage of exchange of pleadings.
The parties led evidence, and thereafter the Sole Arbitrator allowed the claims in part and made its award on 20.08.2020.
In this view of the matter, the Arbitral Tribunal was constituted in terms of the Arbitration Clause No.27 emanating from Contract No.1 of 2007-2008 for adjudicating the disputes only in relation to the Contract No.1 of 2007-2008.
It is not open for the Sole Arbitrator to travel beyond the terms of the contract or terms of the reference.