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Issues: Whether the arbitrator exceeded his jurisdiction and acted contrary to the contract by awarding claims which were expressly barred by the terms of the agreement.
Analysis: The contract fixed a composite and firm rate for the work and expressly excluded extra payment for escalation, additional costs, blasting-related expenses, labour cost increases, and similar claims. The arbitration clause was wide, but the reference was still confined to disputes arising out of the agreement. In a non-speaking award, the Court may examine the contract to determine whether the arbitrator stayed within the limits of the reference. Where the agreement contains an express prohibition against entertaining a class of claims, the arbitrator cannot award such amounts on notions of fairness or by disregarding the contractual stipulation. The claims allowed in the award were found to fall within the express contractual bars.
Conclusion: The arbitrator acted in excess of jurisdiction by granting claims prohibited by the contract, and the award was liable to be set aside in favour of the appellant.
Ratio Decidendi: An arbitrator is bound by the terms of the contract and cannot award amounts expressly prohibited by the agreement; a non-speaking award may be set aside where the contract itself shows that the awarded claims were outside jurisdiction.
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