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SABYASACHI MUKHARJEE, S.RANGANATHAN
Gujarat Water Supply And Sewerage Board – Appellant
Versus
Unique Erectors (Gujarat) Private LTD. – Respondent
Key Points: - The arbitrator was required to decide which disputes were arbitrable under clause 30; the court considered whether the date of reference or the date of entering upon reference should govern interest calculations (!) (!) - The award’s interest calculation involved periods before and during arbitration, and the Court modified the interest awarded, determining that interest pendente lite and post-award interest should be handled per the Balimela and Abhudatta Jena decisions; it fixed dates for commencement of arbitration and publication of the award to compute interest (!) (!) (!) (!) (!) - The Court held that it is not obligatory for arbitrators to provide detailed grounds; a speaking award is not required, but the award must be intelligible and reflect the arbitrator’s mind; non-speaking awards are not per se invalid (!) (!) - The High Court and this Court rejected the contention that the award was invalid for not expressly stating arbitrability, concluding the arbitrator had considered arbitrability and decided on the disputes on the merits within the consent terms (!) (!) - The award partially affirmed and partially modified the arbitrator’s order, disallowing interest from 22-8-1984 to the date of the award and limiting interest to a specified rate and period, with post-award interest continued to be payable (!)
JUDGMENT
SABYASACHI MUKHARJI, J.:— This is an application for leave to appeal under Article 136 of the Constitution from the judgment and order of the High Court of Gujarat dated 29th April 1988 (reported in AIR 1988 Guj 233).
2. To appreciate the questions involved herein, a few facts have to be emphasized. In 1978, the State Government of Gujarat undertook a scheme known as Bhavnagar City Water Suppjy Scheme. The Scheme was divided into two parts : (1) Raising Main; and (ii) Gravity Main. Raising Main was divided into two sections, namely, 10.1kms. and 7.4 kms. steel welded pipeline. On or about 15/16th December, 1978, the State Government issued letter of approval to the bargain between the parties on certain terms.
3. On 12th January, 1979, two contracts were awarded to the respondent No. 1 for Rs. 1,29,39,691/- and Rs. 94,30,435/- which provided the date of completion as February 1979 and the 3rd week of September, 1980 respectively. On 29th March, 1981 the respondent No. 1 filed the Civil Suit No. 588 of 1981 in the City Civil Court with regard to measurements recorded by the Deputy Engineer and alleged underpayments. On 4th June, 1981, the respondent No. 1 gave notice to the S
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