UNITED BUILDERS Vs. UNION OF INDIA

JUDGEMENT

(1.) A short issue raised in this appeal is whether the Arbitrator is required to a pass a reasoned award by virtue of arbitration Clause 70 of the IAFW 2249 or such an award could be without reason. The matter is no longer res integra. The arbitration clause 70 of IAFW 2249 came up for consideration of their Lordships of Hon'ble the Supreme Court in the case of M/S Gora Lal v. Union of India, 2004 AIR(SC) 4956 The expression 'finding' used in arbitration Clause 70 of IAFW 2249 has been interpreted in para 7 of the judgment, which is set out below in extenso:--

(2.) In the present case, Clause 70 of IAFW 2249 is also the arbitration clause and the view taken by Hon'ble the Supreme Court in respect of the aforesaid Clause is obviously binding. As the issue goes to the roots of the matter and the fate of the award dated 22.09.1975 has to be decided in accordance with the law laid down by Hon'ble the Supreme Court, it would be necessary to consider whether the award is a reasoned award or it is a non-speaking award. In that regard, a part of the award is set out in extensor as a sample which represents the nature of the award announced by the Arbitrator and the same reads as under:

(3.) A perusal of the aforesaid award made by the Arbitrator makes it evident that after noticing the claim made by the appellant, the Arbitrator has merely recorded his decision allowing or rejecting the claim. In some items he has partially accepted the claim as against the whole claim made by the appellant, whereas in another cases he has completely rejected the claim. The reasons which are necessary links between the evidence adduced and the findings recorded on each item of dispute are obviously missing. Therefore, it is necessarily hit by the vice of Section 30(a) of the Jammu and Kashmir Arbitration Act, 1945 (for brevity the Act). It has to be concluded that the Arbitrator has misconducted the proceedings and has not passed a reasoned award as per the judgment of Hon'ble the Supreme Court in M/s Gora Lal's case .