UNION OF INDIA Vs. RATTAN LAL BRIJ MOHAN

JUDGEMENT

(1.) IN this appeal by the Union of INdia, the validity of the award made by the Umpire, who entered the reference on the ground of belatedness to make the award by the two arbitrators, is challenged on three grounds; viz (1) the umpire could have entered the reference only if the two arbitrators had disagreed and that there was no occasion for the umpire to intervene as per the terms of the agreement; (2) the parties to the dispute let the time to expire and even thereafter participated in the proceedings by the two arbitrators and therefore, none of them can seek the intervention of the umpire on the ground of belatedness in making the award by the arbitrators; and (3) a lump sum award by the umpire, without giving the award under different heads of claim, is illegal.

(2.) THE 1st respondent, M/s. Rattan Lal Brij Mohan entered into a contract with the Railways (appellant) to carry out certain works. THE contract was governed by the "General Conditions of the Contract" governing the Civil Engineering Works. THE 1st respondent raised a dispute in connection with the contract, and the matter was referred to arbitration by two arbitrators; they entered upon the reference on 5th September, 1979. When one of the arbitrators retired from service, another was appointed in his place, but the appointee requested to replace him, resulting in the appointment of another officer. THE first hearing was fixed on 7th January, 1981, which was changed to 2nd February, which was again adjourned to several dates in February; ultimately the date of hearing was fixed as 2nd May, 1981. THE 1st respondent, on the said date, invoked the appointment of the Umpire, on the ground that the extended period for making the award expired on 1st January, 1981. On 8th May, the umpire entered upon the reference. Both set of parties participated in the proceedings and the award came to be passed on 9th July, 1981, whereby, a sum of Rs. 94,900, with interest thereon at 8% per annum from 19.8.1981 came to be awarded against the appellant. THE 1st respondent filed a petition in this court for a direction to the Umpire to file the award and for making it a decree of the Court.

(3.) IF an arbitrator can make an unspeaking award, there is no reason why he should consider every item of claim separately. With utmost respect to the learned Judge, it is not possible for us to agree with the proposition found in the above passage. The award by an arbitrator in this regard, cannot berequired to comply with the requirements of a speaking order to be made by judicial or quasi-judicial authorities. Arbitrator is the chosen forum of the parties, in whom the disputants have reposed great faith and confidence. While making the award, several factors of equity,, law and facts, would go into his consideration.