Arbitral award upheld where reasoned findings showed sales tax and sale value were distinct, defeating objections for misconduct or legal error.

An arbitral award was upheld where the arbitrator reasoned that sale value and sales tax were distinct items, compensation could be claimed only for delay in payment of sale value, and compensation on sales tax was not contractually sustainable. The court found the documentary record supported the conclusion that the claimants were not liable for sales tax in the manner asserted by the objectors. As the objections failed to show manifest perversity, illegality, misconduct, or an error apparent on the face of the record, the challenge was rejected and the award was made rule of the court.

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Issues: Whether the arbitral award suffered from misconduct or legal error warranting rejection of the objections and whether the award should be made rule of the court.

Analysis: The award recorded a clear finding that sale value and sales tax were distinct items, that compensation could be levied only for delay in payment of sale value and not on sales tax, and that compensation claimed on sales tax was not sustainable under the contract. It further noted the documentary position showing that the claimants were not liable to pay sales tax in the manner asserted by the objectors. In such circumstances, the objections did not disclose any manifest perversity, illegality, or misconduct in the arbitral proceedings.

Conclusion: The objections were rejected and the arbitral award was upheld and made rule of the court.

Final Conclusion: The challenge to the award failed, and the claimants obtained enforcement of the award with consequential relief as directed by the Court.

Ratio Decidendi: A court will not interfere with an arbitral award when the arbitrator has given a reasoned finding within the contract and the objections do not establish misconduct, perversity, or an error apparent on the face of the record.

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