IMPORTANT POINTS
In case of an award being unreasoned,, it should be remitted back to the arbitrator.
Even if the contract requires claim for extra work to be made in particular manner to followed by contractor, when an adjudicating authority finds the contractor entitled to the claim it would not be just and proper to deny such claim.

JUDGMENT

A.S. Bopanna,J.

1. The appellant is before this Court assailing the order dated 08.04.2011 passed by the High Court of Punjab & Haryana at Chandigarh in Civil Revision No.2958/2008 which was disposed of along with Civil Revisions Nos. 2949, 2960 and 2961 of 2008. Through the said order the High Court allowed the Revision in part to the extent of allowing the Claim No.1 of the appellant by modifying the judgment passed by the Trial Court and the First Appellate Court, but insofar as the remaining claims the judgments passed by the First Appellate Court was affirmed. Consequently, the Award passed by the Arbitrator stood modified to that extent. The appellant, therefore, is aggrieved to the extent, the remaining claim of the appellant was rejected. In that view the consideration in the instant appeal pertains to the Claim Nos.2, 3, 8, 12 and 16 as put forth and also the issue relating to the grant of interest which arose for consideration under Claim No.19.

2. For the purpose of convenience and clarity the parties would be referred to in the rank assigned to them in the arbitration proceedings. Accordingly, the appellant herein would be referred to as the claimant, while the respondents would be referred to as the opposite party.

3. The proceedings in question arises relating to an Award passed under the Arbitration Act, 1940 (‘Act 1940’ for short). The claimant and the opposite party had entered into a contract agreement dated 05.02.1985 for construction of Sutlej Yamuna Link Canal (Punjab) and in that regard to carry out the earth work, drainage behind lining and cement concrete lining of Raech RD 71.50 to 72.50 kms. The estimated cost of the project was at Rs.31 lakhs and the contract amount for the work was fixed at Rs.59,86,732/­. The work concerned was to be executed in eight months.

4. In respect of the said contract, the claimant contended that during execution, the scope of work was considerably increased on account of substantial increase of earth work, sloughing of banks, rebuilding of banks with self­draining material, various decisions by the department regarding rebuilding of banks and changes in the strata encountered during excavation due to incorrect geological data observations by the department prior to inviting tender. In that view, the claimant had raised a demand for the additional payment which was disputed by the opposite party, which led to an arbitral dispute. Since the agreement provided for resolution of disputes by arbitration the claimant took recourse to the same. In that background the claimant had sought for additional payment in the claim statement filed before the Arbitrator. The opposite party filed their objections disputing the claim put forth by the claimant. The learned Arbitrator on considering the rival contentions passed the Award dated 31.08.1994 and awarded the amount as claimed by the claimant to be paid by the opposite party with interest at the rate of 18% per annum as also the future interest at 18% per annum from the date of the Award to the date of payment. As required under Act, 1940 the said Award was to be made a ‘Rule of Court’ for which purpose the Award was presented before the Court of the Senior Sub­Judge, Ropar. The opposite party filed objections in the said proceedings and contended that the Award passed by the Arbitrator is not sustainable as the Arbitrator had misconducted himself by awarding the amounts which were not payable as per the contract and the learned Arbitrator had not indicated reasons for the decision. The learned Sub­Judge through the judgment and decree dated 21.10.1995 accepted the objections to the extent of rejection of Claim No.1 and reduction of interest to 12% per annum and in other respects the Award was made the ‘Rule of Court’.

5. The opposite party however continued to remain aggrieved insofar as the non­interference with regard to other claims and, therefore, filed an appeal before the District Judge, Ropar in Civil Appeal No.9/3110 of