An Arbitrator’s Construction of Contract

It is well settled, construction of terms of a contract is primarily for an Arbitrator to decide. He is entitled to take a view, which he holds to be correct one after considering material before him and after interpreting provisions of contract. Court while considering challenge to an Arbitral Award does not sit in appeal over findings and decisions unless Arbitrator construes contract in such a way no fair minded or reasonable person could do.

Hon’ble Justice U.U. Lalit, National Highways Authority of India v. ITD Cementation India Ltd., [Civil Appeal No. 9799 of 2010].


Matters relating to construction of contract lie within province of Arbitral Tribunal [Assam State Electricity Board v. Buildworth Private Limited, (2017) 8 SCC 146]. As long as Arbitrator has taken a possible view, which may be a plausible view, simply because a different view is possible based on same evidence, would not be a ground to interfere.

Hon’ble Justice Hima Kohli, Atlanta Limited v. Union of India, [Civil Appeal No. 1533 of 2017] decided on 18.01.2022.