Arbitral award challenge fails where contract clause on unprecedented flooding is not proved and limited review bars reappraisal.

Clause 47 excluded liability only for loss caused by an act of God, including unprecedented flood, where the event could not have been foreseen or avoided by a prudent person. On the facts, no evidence showed that the rainfall and flooding were unprecedented within that clause, and the arbitrator and High Court had recorded concurrent findings that the clause was not attracted. The award was a speaking award with reasons, and interference under Sections 30 and 33 of the Arbitration Act, 1940 remained confined to limited grounds; the court would not reappraise evidence or replace a plausible arbitral view. The award was therefore not set aside, and interest was modified only to the extent agreed by the parties.

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Issues: Whether the arbitral award was liable to be set aside on the ground that Clause 47 of the contract protected the State against liability for loss caused by unprecedented rain and whether interference was warranted under Sections 30 and 33 of the Arbitration Act, 1940.

Analysis: Clause 47 excluded liability only where loss was occasioned by an act of God, including unprecedented flood, which could not have been foreseen or avoided by a prudent person. No evidence was led to show that the rainfall and flooding were unprecedented within the meaning of the clause. The arbitrator and the High Court recorded concurrent findings that the loss was not caused by such unprecedented rain and that Clause 47 was therefore not attracted. The award was a speaking award, and the arbitrator had given reasons while construing the contract. Interference with an arbitral award is confined to the limited grounds in Sections 30 and 33 of the Arbitration Act, 1940, and the Court will not reappraise evidence or substitute its own view where the arbitrator's view is a plausible one.

Conclusion: The award was not liable to be set aside and the appeal on the challenge to the award failed. The rate of interest was modified only to the extent agreed between the parties.

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