UNION OF INDIA Vs. JAI SOCIETY WOOD WORKS

JUDGEMENT

(1.) The present petition has been filed under Sections 14 and 17 of the Arbitration Act, 1940 on behalf of Union of India for filing of award dated March 18, 1986 and for making the same Rule of the Court.

(2.) The learned arbitrator has given a non-speaking award without assigning any reasons. The documents on record, however, will indicate his thought process and it is settled that it is not necessary for the Arbitrator to indicate reasons and he is well within his rights to pass such an award. In this context, reference may be made to the judgments of the Supreme Court as reported in Raipur Development Authority etc. v. M/s. Chokhamal Contractors etc., AIR 1990 SC 1426 and Secretary, Irrigation Department, Government of Orissa v. G. C. Roy, AIR 1992 SC 732 : (1992 AIR SCW 389). The award, accordingly, cannot be assailed on merits.

(3.) The learned counsel for the respondents has, however, contended that the plea that there was never a valid existing arbitration agreement as no agreement was ever entered into between the parties was not decided by the arbitration. The arbitrator, therefore, possessed no jurisdiction to decide the disputes which were referred to him for adjudication. On the other hand, the learned counsel for the petitioner has argued that the respondents on their own had asked the matter to be referred to arbitration by communication dated July 7, 1983 as addressed to the Director General of Civil Supplies and Disposal. Reference is also made to letter dated March 10, 1981 to reiterate that a valid contract had been entered into between the parties.