Limited Section 34 review upheld a plausible arbitral interpretation, with GST, interest and costs sustained.

Section 34 interference was refused because the arbitral tribunal's reading of the contract and evidence on "welcome drink" reasonably covered the beverage and refreshing tissue, and the resulting production charges, service charges and service tax did not show patent illegality or rewriting of the contract. The GST objection also failed, as the tribunal's prior finding that GST was payable over and above production charges had attained finality and could not be reopened. Interest was sustained under Section 31(7) in the absence of a contractual bar, and costs were upheld under Section 31A as a proper exercise of discretion. The award was left undisturbed.

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Issues: (i) Whether the arbitral award on inclusion of welcome drink and wet tissue, and the consequential grant of production charges, service charges and service tax, suffered from patent illegality or exceeded the contract; (ii) Whether the award of GST on production charges was unsustainable; (iii) Whether the award of interest and costs called for interference under Section 34.

Issue (i): Whether the arbitral award on inclusion of welcome drink and wet tissue, and the consequential grant of production charges, service charges and service tax, suffered from patent illegality or exceeded the contract.

Analysis: The scope of interference under Section 34 is limited and the Court will not sit in appeal over a plausible contractual interpretation by the arbitral tribunal. On the evidence, the communications relied upon by the tribunal showed that "welcome drink" was used to include both the tetra pack beverage and refreshing tissue. The tribunal also relied on the parties' conduct, including the respondent's communication reserving its right to claim charges and the petitioner's continued extensions of the licence. The finding that the respondent was entitled to production charges, service charges and service tax for the welcome drink arrangement was thus based on evidence and a reasonable construction of the record, and did not amount to rewriting the contract.

Conclusion: The challenge on this issue failed and the award was upheld in favour of the respondent.

Issue (ii): Whether the award of GST on production charges was unsustainable.

Analysis: The tribunal had already decided in the interim award that GST was payable over and above the production charges, and that determination had attained finality. The petitioner's attempt to reopen the same controversy by contending that GST had already been embedded in production charges was rejected as an impermissible re-argument of a settled issue. The tribunal also relied on the evidence of the petitioner's witness and the billing record to conclude that the claimed GST amounts remained payable.

Conclusion: The GST award was sustained and the objection was rejected.

Issue (iii): Whether the award of interest and costs called for interference under Section 34.

Analysis: The arbitrator exercised the statutory power under Section 31(7) to award interest in the absence of any contractual bar, and the rate fixed was found to be reasonable. As to costs, Section 31A confers discretion on the tribunal, and the tribunal's award of costs was justified by the result of the proceedings and was not displaced by the separate letter dealing with arbitrator's fees, since fees and costs are distinct concepts. No ground of patent illegality, perversity or public policy violation was made out.

Conclusion: The awards of interest and costs were sustained.

Final Conclusion: No ground for interference under Section 34 was established, and the arbitral award was left undisturbed; the execution petition consequently proceeded on the basis of the award.

Ratio Decidendi: Under Section 34, an arbitral award will not be interfered with where the tribunal adopts a plausible view of the contract and the evidence, and courts cannot reappreciate evidence or reopen issues already concluded by a prior award.

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