SHASTRI CONSTRUCTION CO. Vs. UNION OF INDIA

JUDGEMENT

(1.) THE present revision petition has been filed against the orders passed by the learned Courts below vide which objections filed by the respondent-Union of India, against the award were accepted. The award was set aside on the ground that it was not a speaking award.

(2.) IT is not in dispute that clause 70 of the Contract executed between the parties stipulated that the Arbitrator was to identify each individual item of dispute and give reasons in support of his findings thereon along with the sums awarded. However, in the present case, in spite of Clause 70, the Arbitrator passed a non-speaking award.

(3.) LEARNED counsel for the petitioner contends that the learned Courts below were wrong in recording a finding that the petitioner has failed to cite any law contrary to one relied upon by the objector. The contention of the learned counsel for the petitioner was that the order of the Hon'ble Supreme Court in the case of M/s. G.D. Engineering Construction v. Union of India, Civil Appeal No. 1346 of 1999, decided on January 13, 2004 should have been followed in this case, wherein the Hon'ble Supreme Court was pleased to lay down that unless there is statutory requirement to give reason, there was no necessity for the Arbitrator to have given reasons for the award. Learned counsel for the petitioner submits that Clause 70 of the arbitration agreement was involved in the said case. The order of the Hon'ble Supreme Court relied upon by the petitioner reads as under :-