Arbitral Award Must Be Within The Parameters Of The Agreement Between The Parties

Introduction

Arbitration, as an alternative dispute resolution mechanism, is founded on the doctrine of party autonomy. It derives its validity not from legislative command but from the consent of the parties who choose to submit their disputes to a private tribunal. This consent embodied in the arbitration agreement defines the jurisdiction, scope, and authority of the arbitral tribunal. Consequently, every arbitral award must remain within the parameters of the contract that the parties themselves have agreed upon. When an arbitral tribunal departs from the contractual framework, either by disregarding express terms or granting reliefs inconsistent with the agreement, it not only violates the sanctity of contract but also exceeds its jurisdiction. Such deviation vitiates the arbitral process and renders the award vulnerable to judicial intervention under the Arbitration and Conciliation Act, 1996.