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1968 Supreme(SC) 322

SUPREME COURT OF INDIA
S.M. SIKRI AND R.S. BACHAWAT, JJ.
The Union of India, Appellant
Versus
Jai Narain Misra, Respondent.
Civil Appeal No. 31 of 1966, D/- 31-10-1968.
Advocates appeared
M/s. R. M. Mehta and S. P. Nayar, Advocates, for Appellant; M/s. A. K. Sen and S. V. Gupte, Senior Advocates (Mr. S. S. Shukla Advocate with them), for Respondent.

Advocates:
For the Appellant :M.Y. Bhat, Advocate
For the Respondents: Shuja-ul-Haq, G.A.

Headnote:BURDEN OF PROOF THAT THE AWARD IS VAGUE AND UNCERTAIN - ARBITRATOR NOT BOUND TO GIVE AWARD ON EACH POINT - AWARD CANNOT BE SET ASIDE AT THE INSTANCE OF THE PARTY WHO HAS NOT SUFFERED - SEPaRATE AWARD FOR SUMS ADMITTED AND LUMP SUM IN RESPECT OF THE REST

       

Judgment

BACHAWAT, J.: The respondent Jai Narain Misra is a building contractor. On September 2, 1944, he entered into a contract (No. ES. 2944) with the Government of India represented by the Chief Engineer, Central Command, for the construction of additional quarters at T. P. 2 Kanpur. The contract contained an arbitration clause. Disputes between the parties relating to the contract were referred to Col. H. T. Faithful. The arbitrator made his award on May 19, 1947, On November 15, 1947 the respondent made an application for modifying the award and for remitting it to the arbitrator for re-consideration. On January 5, 1948, he filed additional objections. By his order dated May 26, 1952 the Second Civil Judge, Kanpur, dismissed the objections and pronounced judgment according to the award. The respondent filed an appeal against the order under Section 39 of the Arbitration Act, 1940. By an order dated December 5, 1962, the High Court allowed the appeal and set aside the award on the ground that it was vague and uncertain. The present appeal has been filed by the Union of India on the strength of a certificate granted by the High Court.

2. It appears that the respondent submitted 23 items of claim to the arbitrator. By his letter dated May 6, 1947 he added 6 more items of claim. The Union of India made a counter-claim. The arbitrator was thus required to decide 29 disputed items of claims and the counter claim. The award recited that certain differences between the parties in respect of contract No. ES 2944 of 1944 had been referred to the arbitrator for his decision and that a final award was being made of and concerning the matters referred to him. The relevant part of the award was as follows:-

"I award and direct that the following sums be paid by the respondent to the claimant.

(1) Rupees twenty-two thousand two hundred and ninety two annas five being the amount due to the claimant as calculated by the respondent.

(2) Rupees six thousand being the amount of security deposit paid by the claimant and now in possession of the respondent.

(3) Rupees seventy nine thousand three hundred and thirty nine.

The total amount to be paid by the respondent to the claimant is therefore one lakh seven thousand six hundred and thirty one annas five.

Each party to the dispute shall bear its own costs, including the cost of the stamp duty on the award."

3. The High Court held that the award suffered from a patent ambiguity for the following reasons. It was not clear why the arbitrator awarded the first item of Rs. 22,292/5/- and the 3rd item of Rs. 79,339/- separately. The arbitrator found only the first item of Rs. 22,292/5/- to be due to the respondent; it was not clear whether he intended also to award the 3rd item of Rupees. 79,339/- to the respondent. As the dispute consisted of 29 items of claims and a counter-claim, the arbitrator should have made an award in respect of all the items separately or in combination or should have made a lump award in respect of all the items. We are unable to accept this line of reasoning.

4. The award on the face of it professes to be of and concerning all matters. submitted to the arbitrator. In respect of all such matters the arbitrator awarded a sum of Rs. 107631/5/- to the respondent. This amount was made up of three sums separately mentioned in the award. It was not the case of the respondent in the Trial Court that the award was uncertain or not intelligible. The objection was taken for the first time before the High Court. On the record there is nothing to show that the award was not intelligible to the parties.

5. The Court leans towards the construction that the award is certain. Prima facie the award is good, and it is for the defendant to show that it is uncertain. Per Jervis, C. J. in Mays v. Cannell, (1854) 24 LJ QB 41 at p. 45. There is no ambiguity about the first and the third items of the award. The uncontradicted evidence of S. Choudhary, the witness for Government is "Item No. 1 of the award







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