JUDGEMENT
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(1.) THE Court: A seemingly irrelevant submission on behalf of the respondent
contractor afforded the Court an opportunity for course correction and
appreciate that the quality and quantity of the evidence that was before the
arbitrator and that may have satisfied the arbitrator may ordinarily not be
gone into by a Court in proceedings for annulment of an arbitral award.
(2.) THE primary ground urged by the petitioner in the present petition under sections 30 and 33 of the Arbitration Act, 1940 is that the claim could not have
been carried to the reference since the contractor had no claim at all and, upon
payment of the contractor's seventh RA and final bill on August 5,1986, the
obligation of the employer stood completely discharged. In support of such case
of accord and satisfaction, the petitioner refers to the letters dated August 5,
1986, August 25,1986, November 21,1986, February 15,1987, February 27, 1987 and March 21,1988. The petitioner suggests that notwithstanding it being evident from one or more of the letters that a reservation was expressed by the
contractor at a later stage after receiving the payment against the final bill, it
is evident that there was no grievance expressed or recorded by the contractor
within any reasonable time of receipt of the final payment that the contractor
had to accept such payment under coercion or duress or any other compulsion.
The petitioner submits that parole evidence was essential for the claimant in
the reference to establish that the employer was not discharged after the claimant
received the payment without recording any immediate protest. The petitioner
says that in the absence of oral evidence being adduced on behalf of the claimant
in the reference, the arbitrator was bound to go by the contents of the letters
that had been exchanged between the parties during the relevant period. The
petitioner proceeds to add that nothing in those letters would suggest that there
was anything that weighed on the contractor for the contractor to be constrained
to accept the final payment without any protest.
It may have been relevant to go into the contents of the several letters referred to above and, in any event, to at least two of them which were issued
several months after the final payment had been received on which a case of
the contractor having received the final payment under protest may have
been founded. But in the context of the assessment that is appropriate in this
jurisdiction, which is supervisory and not appellate, it would be injudicious to
refer to or reappreciate matters of evidence before the arbitrator; whether to
justify or criticise the award.
(3.) THERE is a line in one of the minutes which recorded that the contractor was not desirous of adducing oral evidence. The contractor did not proffer any
reason for not calling any witness. The award does not record any reason as to
why the contractor did not attempt to adduce oral evidence. Yet, it is submitted
on behalf of the contractor, without any backing in support thereof in the
pleadings, that the person in control of the contractor firm at the relevant time
had expired prior to the reference being taken up, or, at any rate, prior to the
time when the question of oral evidence came up. Since that was not a ground
which was cited by the contractor for not adducing oral evidence and the reason
is not recorded either in the award or in the affidavit filed on behalf of the
contractor, such submission has to be regarded as utterly irrelevant and cannot
be given any credence. What such submission highlights, however, is that
there would be many considerations as to how the quality or the quantity of the
evidence would weigh with one and how it would be seen by another. Once an
arbitrator or arbitral tribunal, the consensual forum of the parties, is posted
with the authority to adjudicate upon the disputes covered by the arbitration
agreement, the tribunal is also accorded the jurisdiction to find the tools to
make the assessment, subject to the award and the conduct of the reference
being open to supervision by a Court of law and the award being open to scrutiny
on the primary grounds of error of jurisdiction and serious irregularity.;
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