Supreme Court Rules Arbitrators Cannot Rewrite Contracts, Orders Refund with Interest
The Supreme Court ruled that arbitral awards ignoring or rewriting clear contract terms are illegal and can be set aside. It ordered a refund with interest under a disputed development agreement. The bench emphasized arbitrators must decide strictly by contract terms and trade usages, warning that exceeding these terms results in patent illegality. The ruling came in an appeal by Shreeram Builders against a Bombay High Court order.
Deccan Herald··Mumbai



