Staff Reporter :
The appellate Division of the Supreme Court has observed that the court should not interfere with award of an arbitrator with in a casual and cavalier manner and the same should not be interfered unless the award portrays perversity.
The court said, “Arbitration has been widely recognized as an efficient and effective mode of dispute settlement by the international community. Provisions of section 43 of the Arbitration Act have to given a strict interpretation and that the effort should be made to uphold the award, unless it squarely falls within the ambit of the said section.”
It also said, “The award of the arbitrator is ordinarily final and conclusive as long as the arbitrator was acted within his authority and according to the principle of fair play. The Court should not interfere with award unless award portrays perversity and the same should not be interfered with in a casual and cavalier manner.”
The court also observed that award of an arbitrator could be set aside if it is so unfair and unreasonable that it shocks the conscience of the Court. Such award is opposed to public policy and is required to be adjudged void.
A four-member bench of the Appellate Division headed by Chief Justice Syed Mahmud Hossain passed the observation in a full text of a verdict after holding hearing on a civil review petition filed over an arbitrational matter.
The apex court delivered the short verdict on December 15 in 2020, while the full text of the verdict released recently on the Supreme Court website.
“The Arbitrator’s decision is generally considered binding between the parties and therefore, the power of the Court to set aside the award would be exercised only in cases where the Court finds that the arbitral award is on the face of it erroneous or patently illegal or in contravention of the provisions of the Act,” also read the verdict referring a case of Indian Supreme Court.
It also observed, “A Court can set aside an award only on the grounds provided in Arbitration Act. Arbitral awards should not be interfered with in a casual and cavalier manner, unless the Court comes to a conclusion that the perversity of the award goes to the root of the matter, without there being a possibility of alternative interpretation, which may sustain the arbitral award.”
Saudi Arabian Airlines Corporation (SAAC) filed the review petition in 2010.
According to the case documents, an arbitral tribunal on April 8 in 2006 after considering the evidence on record, the relevant exhibits filed by both the parties and upon hearing the submissions of both the parties, awarded in favour of Saudi Arabian Airlines Corporation, by their majority decision, the claimed amount of Tk 312.75 million.
But the other party, Saudi Bangladesh Services Company (SBSC), challenged the legality and propriety of the award given by the majority of the arbitrators and filed Arbitration Case with the HC. Upon hearing the case the HC on June 8, 2006 set aside the award made by the majority decision of the Arbitration Tribunal.
Against the judgment and order of the HC Division, the Saudi Arabian Airlines Corporation filed Civil Petition for Leave to Appeal with the Appellate Division in 2009 which was dismissed by a judgment and order on March 1 in 2010.
Then the Saudi Arabian Airlines Corporation filed the Civil Review Petition and upon hearing the apex court ultimately allowed the said Civil Review Petition and delivered the judgment on December 15 in 2020.
