In Brief
A construction company contracted with the Union of India to build a runway at a Naval Air Station. After claiming delay due to various reasons, the contract was terminated. The company invoked arbitration. The arbitrator awarded substantial damages for wrongful termination and idle machinery charges. The Division Bench set aside these awards. The Supreme Court held that courts cannot reappreciate evidence or substitute their views for the arbitrator's reasoned conclusions in proceedings under the Arbitration Act, 1940. The arbitrator's findings on extension of time and illegal termination were properly reasoned and cannot be overturned merely because another view is possible. The Court restored the arbitrator's full award and quashed the Division Bench judgment.
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