Execution of arbitral award can be refused where the award is perverse and lacks evidentiary foundation.

An executing court may resist enforcement of an arbitral award, even after merger into a decree, where the award is shown to be perverse, unsupported by evidence or material, or tainted by legal misconduct. The court may examine the underlying arbitral record to see whether the arbitrator had cogent claims, reference material, accounts, or documentary foundation for fastening liability. On the facts, the award was found to rest on no identifiable claims or intelligible basis, and the memorandum of understanding did not cure the defect. Execution was therefore refused and the execution application dismissed.

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Issues: Whether the executing court could examine the validity of the arbitral award and refuse execution on the ground that the award was unsupported by material, perverse, and vitiated by legal misconduct.

Analysis: The award had to be tested on the footing that, although it had merged into a decree, execution could still be resisted where the foundational arbitral process was shown to be legally defective. The Court held that the executing court was not confined to a mechanical enforcement exercise and could lift the veil to see whether the arbitrator had before him any cogent material, terms of reference, statements, accounts, or documentary foundation for the award. On the record, there was found to be a total absence of identifiable claims, proper reference material, supporting accounts, and intelligible basis for fastening liability, while the memorandum of understanding relied upon by the petitioner did not validate an otherwise defective award.

Conclusion: The award was held to be unenforceable in execution and the execution application was dismissed.

Ratio Decidendi: An executing court may refuse enforcement of an arbitral award if the award is shown to be perverse, unsupported by evidence or material, or otherwise vitiated by legal misconduct, and it may examine the underlying arbitral record to determine whether the decree is capable of lawful execution.

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