Bharat Sanchar Nigam Limited Vs. M/s Optel Telecommunication Ltd

Madhya Pradesh High Court (Single Judge)

AA, 22 of 2010, Judgment Date: Mar 08, 2018

Law Laid down -

• The learned Arbitrator is bound by the terms of Agreement. Therefore, an award rendered by such an arbitrator cannot be sustained if an Arbitrator has traveled beyond the terms of the agreement to hold that there was an oral agreement prior to placing of Advance Purchase Order, which was accepted by the respondents.
• The terms of the contract stand crystallized with the issuance of Advance Purchase Order and acceptance of the same. The Arbitral Tribunal has to take into account the terms of the contract while deciding and making an award. The terms of the contract are sacrosanct and an award cannot be rendered against the terms of the contract. If the terms of the contract have been interpreted then the decision of the Arbitrator would not be interfered with in proceedings under Section 34 of the Act.

Bharat Sanchar Nigam Limited Vs. M/s Optel Telecommunication Ltd