IN THE HIGH COURT OF KARNATAKA AT BANGALORE
Tirath S. Thakur, J.
V.S. Reddy — Appellant
Vs.
M. Jayakumar and Another — Respondent
Writ Petition No. 35780 of 2000
Decided on : 08-12-2000
Interpretation - Arbitration and Conciliation Act, 1996 - Section 33
Fact of the Case:
Disputes arose between the Petitioner-contractor and the Department of Telecommunications regarding the termination of a construction contract. The Arbitrator made an award in favor of the Petitioner, which included a claim of Rs. 35,000 and interest. The Petitioner then made an application under Section 33 of the Arbitration and Conciliation Act, 1996 for interpretation of the award, which was rejected by the Arbitrator. The Petitioner approached the Court under Article 226 of the Constitution seeking direction to the Arbitrator to re-examine the matter.
Finding of the Court:
The Court held that the request for interpretation of the award was misconceived as there was no agreement between the parties allowing such interpretation. The Arbitrator's rejection of the application was justified, and the Court found no grounds for interference.
Issues: Dispute over interpretation of arbitral award under Section 33 of the Arbitration and Conciliation Act, 1996
Ratio Decidendi: The power to request interpretation of a specific point or part of the award under Section 33(1)(b) is permissible only if the parties have agreed to it. In the absence of an agreement, the request for interpretation may be rejected. The power to interpret the award is not meant to be used as a mechanism for asking the Arbitrator to re-examine the conclusion arrived at by him.
Final Decision: The Petition was dismissed in limine as there was no merit in the Petitioner's claim.
Tirath S. Thakur, J.—Disputes relating to the termination of a contract for construction of a Telephone Exchange at Karisandra in Bangalore having arisen between the Petitioner-contractor and the Department of Telecommunications, a reference for adjudication of the same was made to Sri M. Jayakumar as sole Arbitrator. The Arbitrator entered upon the reference and after hearing both the parties, made an award, by which the claim made by the Petitioner was allowed only to the extent of Rs. 35,000/- besides an amount of Rs. 16,608/- towards interest. Future interest from the date of the award till date of payment at the rate of 12% p.a. was also awarded. An application purporting to be one under Section 33 of Arbitration and Conciliation Act, 1996 for interpretation of the award was then made by the Petitioner, which has been upon consideration rejected by the Arbitrator in terms of order dated 13th of October, 2000 impugned in this Petition.
2. Learned Counsel for the Petitioner argued that the Arbitrator was not justified in rejecting the application as the Petitioner had made out an excellent case for interpretation. He urged that the order impugned was laconic, hence unsustainable in law and that this Court could under Article 226 of the Constitution interfere with the same with a direction to the Arbitrator to re-examine the matter.
3. Section 33 of the Arbitration and Conciliation Act, 1996 provides for correction and interpretation of the awards. It runs thus:
Correction and interpretation of award; additional award.-(1) Within thirty days from the receipt of the arbitral award, unless another period of time has been agreed upon by the parties-
(a) a party, with notice to the other party, may request the arbitral tribunal to correct any computation errors, any clerical or typographical errors or any other errors of a similar nature occurring in the award;
(b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award.
(c) If the arbitral tribunal considers the request made under Sub-section (1) to be justified, it shall make the correction or give the interpretation within thirty days from the receipt of the request and the interpretation shall form part of the arbitral award.
(3) The arbitral tribunal may correct any error of the type referred to in Clause (a) of Sub-section (1), on its own initiative, within thirty days from the date of the arbitral award.
(4) Unless otherwise agreed by the parties, a party with notice to the other party, may request, within thirty days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award.
(5) If the arbitral tribunal considers the request made under Sub-section (4) to be justified, it shall make the additional arbitral award within sixty days from the receipt of such request.
(6) The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction, given an interpretation or make an additional arbitral award under Sub-section (2) or Sub-section (5).
(7) Section 31 shall apply to correction or interpretation of the arbitral award or to an additional arbitral award made under this section.
4. A plain reading of the above would show that the provision envisages not only correction of any computation, clerical or typographical errors, but also interpretation of any specific point or part of the award. While Clause (a) of Sub-section (1) of Section 33 deals with correction of errors, Clause (b) provides for interpretation. The difference in the mechanism provided for invoking the said two provisions apparently is that while a request for correction of any computation, clerical or other error can be made by any party, a request for interpretation of any specific point or part of the award under Clause (b) is permissible o
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