Andhra Pradesh High Court
Judges : B.SUDERSHAN REDDY, P.RAMAKRISHNAM RAJU
State Bank of India, REP.BY CHIEF General Manager, HYDERABAD - Appellant
Versus
RAM DAS, SECUNDERABAD - Respondent
Decided On : 03-12-98
Arbitration Act, 1940 – Sections 30, 34, 14, 17 – Arbitration Proceedings – Cases arise out of an Award passed by the Umpire in the Arbitration proceedings. – C. M. A. is filed by the State Bank of india and directed against the Judgment in O. P. on the file of the learned I Additional Judge, City Civil Court, filed under section 30 and 34 of the Arbitration Act, 1940 to set aside the Award – C. R. P. is directed against the Judgment and decree passed in O. P. making the Award Rule of the Court. – C. R. P. is directed against the Judgment and decree in O. S. – Said suit is filed by the Umpire to issue notices to the parties to the arbitration proceedings and for making the Award passed by the Umpire Rule of the Court – Held, Here is a case where the award is vitiated for the simple reason of not giving reasons in the award. It is not a case where the award is vitiated on account of lack of jurisdiction on the Umpire to pass the award. – The amended proviso to Section 17 (1) says that the award filed into the Court which does not contain reasons shall have to be remitted to the arbitrator or the Umpire for giving reasons thereof, as required by proviso to sub-section (1) of section 14 of the Act of 1940. – Therefore, it is not possible to accept the submission made by the learned senior Counsel appearing for the SBI to set aside the award in toto. – Court is really surprised to notice that the Umpire in this case has chosen not only to file the award into the Court through a Counsel appointed by himself, but also filed O. S. to make the award Rule of the Court. – It is difficult to appreciate as to why the Umpire has chosen to adopt such a course. Such actions on the part of the arbitrators or Umpire would convey wrong signals. – It is needless to reiterate that arbitrator/umpire is chosen by the parties to resolve their dispute and is required to act as an independent Tribunal. – The Umpire ought not to have filed the suit for making the award rule of the Court. – No Umpire/arbitrator is under any duty or obligation to defend their own award. – It is for the parties to the dispute to avail the remedies available to them in law. – Court disapprove the method adopted by the Umpire. – Weneedsay nothing further on this aspect. – Award is remitted to the Umpire for giving reasons in the light of the observations made in this Judgment – Umpire shall give reasons within thirty days from the date of receipt of a copy of this order – Civil Misc. Appeal Allowed
( 1 ) THESE cases arise out of an Award passed on 8-8-1984 by the Umpire in the Arbitration proceedings. C. M. A. No. 1805/94 is filed by the State Bank of india and directed against the Judgment in O. P. No. 76/85 on the file of the learned I Additional Judge, City Civil Court, Hyderabad, filed under section 30 and 34 of the Arbitration Act, 1940 to set aside the Award dated 8-8-1984. C. R. P. No. 5283/94 is directed against the Judgment and decree dated 27-4-1993 passed in O. P. No. 968/93 making the Award Rule of the Court. C. R. P. No. 5367/94 is directed against the Judgment and decree in O. S. No. 191/85. The said suit is filed by the Umpire to issue notices to the parties to the arbitration proceedings and for making the Award dated 8-8-1984 passed by the Umpire Rule of the Court. All the matters were disposed of by the learned trial Judge by a common judgment under challenge.
( 2 ) FOR the sake of convenience the parties shall be referred to as the petitionerand respondents, as arrayed in CR. P. No. 5283/94.
( 3 ) THE first respondent, M/s. Ramdas Contractors shall be referred to as the contractor and the petitioner as the State Bank of India (for short sbi . ). The contractor raised a dispute in respect of execution of work relating to the construction of Local Head Office building of the SBI at Hyderabad. The parties have entered into an agreement on 6-10-1978 relating to the said contract. The matter was referred, to arbitration under Clause 36 of the agreement dated 6-10-1978. Two arbitrators viz. , M. Sudhakar Reddy and t. K. Mohan Rao, were appointed as arbitrators. The arbitrators could not reach to a unanimous decision in the matter of passing the Award. Consequently one Sri. M. U. Hattikudur was appointed as Umpire to adjudicate the dispute. The arbitrators made available all the documents filed before them by the parties to the Umpire and the Umpire entered upon the reference on 5-5-1984 and both the parties were required to submit their respective claims. The parties have filed their statement of claims and made available the correspondence between the parties. The correspondence between the parties, filed by the Contractor/claimant was marked before the Umpire as exs. C-33, 34 and 35 and the counter claim filed in one volume by the SBI during hearing was marked as Ex. R-39. Both the parties have agreed before the Umpire to rely upon all the documents produced by them before the joint arbitrators. The documents upon which the reliance was placed by the claimant/contractor were marked as Exs. C-1 to C-32; whereas the documents filed and relied upon by the State Bank of India were marked as Exs. R-1 to r-38. A copy of the agreement is marked as Ex. R-4. Copies of all the documents, claims and counter claims were exchanged between the parties. The Umpire having entered appearance had given due notice to the parties, heard the parties on 13th, 14th and 15th of June, 1984. The parties were represented by their respective legal Advisors.
( 4 ) IN all, the Contractor/claimant had put forward twenty-three claims, totalling to a sum of Rs. 22,98,843. 44 and also claimed interest and costs of arbitration proceedings. The SBI not only resisted the claim, but also put forth counter claim of Rs. 9,02,306. 75, After hearing both the parties, the Umpire made Award dated 8-8-1984.
( 5 ) THE Umpire filed OS. No. 191 /85 by engaging an Advocate to issue notices to the Con tractor/claimant, as well as the SBI, who are the parties to the arbitration proceedings and for making the Award dated 8-8-1984 Rule of the court. Having received the notices, the con tractor/claimant filed OP. No. 968/93 for making the Award of the Umpire Rule of the Court; and the sbi filed OP. No. 76/85 for setting aside the Award made by the Umpire. While proceedings were pending. Sections 14 and 17 of the Arbitration Act, 1940, (for short act, 1940) were amended by the State Legislature of Andhra Pradesh by the Amendment Act 1
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