DELHI DEVELOPMENT AUTHORITY Vs. UPPAL ENGINEERING CONSTRUCTION CO

JUDGEMENT

(1.) THE short point in issue in this appeal is the seope of seruitiny of a speaking award. Does the fact that the arbitrator has given a speaking award enlarge the function of the court and permit it to examine the reasons, as a court of appeal, reviewing their "reasonableness"? In a detailed judgment delivered by us on 24th February, 1982 in Delhi Development Authority v. M/s. at Karma F.A.O. (O.S.) 142 of 1979(1), we have held not.

(2.) SECTION 30 of the Arbitration Act, 1940 prescribes the grounds on which an award can be set aside. The fact that an award is a reasoned award does not extend or change the Arbitration Act or law. If the error is apparent on the face of the award, it can be set aside. Naturally in a speaking award the reasons are apparent on the face of it. Therefore, if these reasons are based on any legal preposition which is erroneous, the award can be set aside.

(3.) IT is apparent from the reasons indicated above that the arbitrator considered this aspect of the matter and accepted the submission of the contractor. The said submission was that the DDA was bound to supply the bricks at the control rate prevalent on the date of subsmission of tender and that these were "to be supplied at site the giving of a permit to procure bricks at the subsequently prevailing rates was not compliance of the terms of the contract.