Interference by the court

Lesotho Highlands Development Authority v Impregilo SpA and others

Section 68 of the Arbitration Act 1996 provides: ‘(1) A party to arbritral proceedings may … apply to the court challenging an award in the proceedings on the grounds of serious irregularity … (2) Serious irregularity means an irregularity of one or more of the followings kinds which the court considers as cause … substantial injustice to the applicant – (b) the tribunal exceeding its powers.’ Where it was alleged that the tribunal had committed an error of law, whether by erring in the interpretation of the underlying contract or by misinterpreting its powers under the contract, a mere error of law by arbitrators does not amount to an excess of power under s68(2)(b) of the Act so as to allow the court to interfere with the award.