Appellate court cannot re-appreciate evidence to ascertain correctness of arbitral award, says Supreme Court

The Supreme Court on Friday said the appellate court cannot re-appreciate the evidence of dispute to ascertain the correctness of the award of arbitral tribunal.

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The top court, however, said the appellate court can interfere with the award only if it is in conflict with the public policy of India or is induced or affected by fraud or corruption.

A bench of Justices PS Narasimha and Pankaj Mithal said that the object of the Arbitration and Conciliation Act of 1996 was to provide for a speedy and inexpensive alternative mode of settlement of dispute with the minimum of intervention of the courts.

It said Section 5 of the Act is implicit in this regard and prohibits interference by the judicial authority with the arbitration proceedings except where so provided in the law.