Valid Or Invalid

Legal Principle

A party to an arbitration contract have right to request annulment of arbitration award if arbitrator did not follow the procedures contained in the arbitration contract or the agreed terms of reference.

Terms of reference

Terms of reference is the agreement between the arbitrator(s) and the parties containing the rules applicable to arbitration, procedural time table, and the list of issues to be decided by the arbitration tribunal.

Facts

The claimant filed case in court requesting the ratification of a final arbitration award to enforce the respondent to pay the awarded amount. The claimant in its claim also requested the court to direct the respondent to pay an extra 5% of the awarded amount for not following court order. The court of first instance accepted the claimant's request and ruled that the respondent shall pay the awarded amount and the extra 5% as claimed by the claimant.