In Sambu, in a highway rehabilitation contract, the Respondent company was directed by the Petitioner authority to build additional works not in the tender scope. The Respondent claimed PKR 65.4 million as additional payment. Arbitration ruled in the Respondent’s favor; award was decreed and partially executed. The Petitioner challenged the award in litigation which came before the Supreme Court.
Held: Once parties choose arbitration, they must respect its outcome. Courts should avoid over-intrusive review of arbitral awards.
Court’s Observations:
“Arbitration is a forum of the parties’ own choice; its decision should not be lightly interfered with by the court.”
“The arbitrator alone is the judge of the quality as well as the quantity of the evidence … the court is not supposed to sit as a court of appeal and make a roving inquiry.”
“…interference is only possible if there exists any breach of duty or irregularity inconsistent with equity and good conscience.”
“An over-intrusive approach by courts in examination of arbitral Awards must beavoided.”