AKASH BUILDERS Vs. UNION OF INDIA

JUDGEMENT

(1.) A Contract Agreement came to be executed between the petitioner and the respondent on 17th February, 1981. The aforesaid contract, however, came to be cancelled by the respondent on the allegation that the petitioner could not complete the entire work. Accordingly disputes and differences having arisen between the parties, Lt. Col. Y.P.Adlakha, was appointed as the sole arbitrator by the Chief Engineer (W.A.C.) AF, Jalandhar Cantt on 24th June,1994 to adjudicate upon the dispute between the parties. The arbitrator entered upon the reference on 25th July, 1994 and after examining the claims of the parties and the documentary and oral evidence produced before him made and published his award on 24.3.1995. The aforesaid award is admittedly a non-speaking award. The petitioner through the present petition has sought for making the award a Rule of the Court whereas the respondent has filed the objection. Accordingly, the matter was taken up for consideration and final disposal.

(2.) The law in respect of a non-speaking award is by now settled by the decision of the Supreme Court. It is held in State of Orissa & others Vs. M/s. Lall Brothers. reported in 1988 SC 2018 that the fact that there is an unreasoned award is no ground to set aside the award and that a lump sum award is not bad per se. In Raipur Development Authority etc. etc., Vs. M/s. Chokhamal Contractors etc.etc., reported in AIR 1990 SC 1426, the Supreme Court has held that the non-requirement of reasons being given in support of the award passed by the arbitrator cannot be said to be violative of the principles of natural justice or otherwise illegal. Where parties do not stipulate requirement of reasons in support of an award, the same is not invalid on that count and the arbitrator need not give any reason in support of his award.

(3.) In M/s. Lal Brothers case(supra), the Supreme Court has also held that it is not open to the Court to speculate where, no reasons are given by the arbitrator, as to what impelled him to arrive at his conclusions.