UNION OF INDIA Vs. JAI NARAIN MISRA

JUDGEMENT

(1.) The respondent Jai Narain Misra is a building contractor. On September 2, 1944, he entered into a contract (No. ES. 2944) with the Government of India represented by the Chief Engineer, Central Command, for the construction of additional quarters at T. P. 2 Kanpur. The contract contained an arbitration clause. Disputes between the parties relating to the contract were referred to Col. H. T. Faithful. The arbitrator made his award on May 19, 1947, On November 15, 1947 the respondent made an application for modifying the award and for remitting it to the arbitrator for re-consideration. On January 5, 1948, he filed additional objections. By his order dated May 26, 1952 the Second Civil Judge, Kanpur, dismissed the objections and pronounced judgment according to the award. The respondent filed an appeal against the order under Section 39 of the Arbitration Act, 1940. By an order dated December 5, 1962, the High Court allowed the appeal and set aside the award on the ground that it was vague and uncertain. The present appeal has been filed by the Union of India on the strength of a certificate granted by the High Court.

(2.) It appears that the respondent submitted 23 items of claim to the arbitrator. By his letter dated May 6, 1947 he added 6 more items of claim. The Union of India made a counter-claim. The arbitrator was thus required to decide 29 disputed items of claims and the counter claim. The award recited that certain differences between the parties in respect of contract No. ES 2944 of 1944 had been referred to the arbitrator for his decision and that a final award was being made of and concerning the matters referred to him. The relevant part of the award was as follows:-

(3.) The High Court held that the award suffered from a patent ambiguity for the following reasons. It was not clear why the arbitrator awarded the first item of Rs. 22,292/5/- and the 3rd item of Rs. 79,339/- separately. The arbitrator found only the first item of Rs. 22,292/5/- to be due to the respondent; it was not clear whether he intended also to award the 3rd item of Rupees. 79,339/- to the respondent. As the dispute consisted of 29 items of claims and a counter-claim, the arbitrator should have made an award in respect of all the items separately or in combination or should have made a lump award in respect of all the items. We are unable to accept this line of reasoning.