Scope of interference by courts in regard to arbitral awards limited: SC

The court need not interfere with an arbitral award under challenge if the arbitrator had taken a different but possible view on the same evidence.

The Supreme Court has held that an arbitral award can be challenged only if it is perverse or erroneous in law. An award based on an alternative and reasonable interpretation of the law does not make it perverse. “In order to succeed in a challenge against an arbitral award, it must be shown that the award of the arbitrator suffered from perversity or an error of law or that the arbitrator has otherwise misconducted himself. Merely showing that there is another reasonable interpretation or possible view on the basis of the material on the record is insufficient to allow for the interference by the court,” a three-judge Bench led by Chief Justice of India N.V. Ramana held in a recent judgment.