Allied Trading Corporation vs National Seeds Corporation ...
1998 Latest Caselaw 791 Del

ORDER

Dr. M.K.Sharma, J.

1. Three purchase orders dated 9.11.1989, 8.1.1990 and 10.4.1990 were issued by the respondent in favour of the petitioner for supply of cloth bags. In terms of the aforesaid purchase orders the petitioner supplied cloth bags to the respondent No.1. The respondent however, did not release the entire payment to the petitioner for the aforesaid goods supplied to it and on that count disputes arose between the parties which were referred for adjudication and decision through arbitration. The arbitrator entered upon the reference and made and published his award on 22.3.1994.

2. Subsequent to making and publishing the said award a petition was filed in this court under Section 14 of the Arbitration Act praying for issuance of a direction to respondent No.2 to file the original award in this court. This court issued notice to the arbitrator for filing of the award, in pursuance of which the original award was filed in this court. The respondent has filed objections as against the aforesaid award which are registered as I.A. No.7722/1998.

3. This order shall dispose of the aforesaid objection filed by the respondent as also the suit registered on the basis of the petition filed by the petitioner.

4. I have heard the learned counsel appearing for the petitioner as also the learned counsel appearing for the respondent who have taken me through the contents of the award passed by the arbitrator. On perusal of the said award passed by the arbitrator I find that the said award is a non-speaking award. It is admitted by the counsel appearing for the parties that there was no obligation on the part of the arbitrator to give reasons for his award. When the parties to the dispute insist upon reasons to be given the arbitrator is under an obligation to give reasons. But the parties may not wish that the arbitrator should give reasons for his award and in such circumstances the arbitrator is not obliged to give reasons for his award.

5. The counsel appearing for the respondent however, submitted that the award passed by the arbitrator is liable to be set aside and remitted back as the arbitrator has failed to take into consideration the relevant evidence adduced. He also submitted that while making the award the arbitrator has failed to consider the objections raised by the respondent that the bags so supplied were not according to specifications, on the basis of the report of the laboratory. In the arbitration proceedings, the arbitrator has made a non-speaking award. While making his award the arbitrator has given no reasons for his decision. When an award is a non-speaking award the court cannot hold that the arbitrator's decision is based on good evidence or insufficient evidence or no evidence at all. As a matter of fact there was evidence before the Arbitrator and on the basis of the said evidence adduced before him the arbitrator has made his award without recording any reasons thereof.

6. The arbitrator has weighed the evidence adduced by the parties and has made his award but has given no reasons as to why some of the claims of the petitioner were rejected and some others were accepted. In N.S.& Co.Bombay Vs. M.& M.T. Corporation of India Ltd.; , this court has held that it is well settled that the arbitrator is not bound to give a separate award for each claim. He can give a lumpsum award. It is also held that when the arbitrator has given no reason for his award nor is there any legal proposition as basis of award, the contention that there are errors of law or fact on the face of the award must be rejected. No error apparent on the face of the record could also be pointed out by the learned counsel appearing for the petitioner and thus I do not find any merit in the objections raised by the petitioner and the same are rejected.

7. In the result the award passed by the arbitrator is upheld and is made a Rule of the Court. The petitioner shall be entitled to interest @ 12% per annum from the date of the decree till payment.