An arbitrator is required to give reasons for his conclusions, and the failure to do so renders the award invalid.

Dr. M. K. Sharma, J.

( 1 ) THE petitioner entered into a contractct with the respondent for execution of the work of construction of certain flats in Pocket c at Kilokari village and a proper agreement was executed between the parties in respect of the aforesaid works. While executing the aforesaid work disputes arose between the parties and in terms of the arbitration agreement in the contract the aforesaid disputes were referred to the sole arbitration of Shri Trilok Singh, the Arbitrator.

( 2 ) THE Arbitrator, after hearing the parties and receiving the documents placed on record made and published his award on 29. 9. 1993. Notice of filing of the award was served on the parties and. thereafter objections to the award have been filed by both the petitioner as also by the respondent which were registered as I. A. Nos. 7570/1994 and 7571/1994. The petitioner has sought for setting aside and/or modification of the award passed by the Arbitrator in respect of Claims No. 3 and 7 relating to extra cost of cement and less measurement of areas respectively,where as the respondent has filed the objections in respect of the award passed by the Arbitrator against claims No. 1,2,3,6,7,16 and also as against the award passed by the Arbitrator awarding costs in favour of the petitioner.

( 3 ) WHEN the matter was called out for arguments none appeared on behalf of the parties and accordingly. I myself considered the objections filed by the parties and also perused the award alongwith the records of the arbitration proceedings in order to arrive at a just decision.

( 4 ) ON careful consideration of all the aforesaid documents, I propose to dispose of the present suit as also the objections in the light of the discussion hereinafter recorded.

( 5 ) CLAIM No. 1: This claim relates to payment of an amount of Rs. 9,16,534. 00 on account of extra establishment, idle labour, tools and plants. The petitioner was unable to complete the work in time, as per agreement on the ground of failure on the part of the respondent to make available the site and material like-cement etc. and also not making available the decisions of the respondent relating to the contract work expeditiously. During the course of arguments the petitioner reduced the aforesaid claim to Rs. 2,61,685. 53. The aforesaid claim was challenged by the respondent on the ground that the claim had been withdrawn by the petitioner vide Ex. R-1 dated 26. 11. 1990. The aforesaid letter, according to the petittoner was obtained under pressure bygranting extension of time. The Arbitrator considered the statement of facts, arguments, records of examination/cross-examination of the petitioner s sole proprietor, cases quoted by both the parties and letters written by both the parties. The Arbitrator found that the extension of time was granted without levying any penalty. The petitioner s tools, plants and machinery were found to have remained idle during the period of hurdles and that watch and ward staff had also to be kept by the petitioner at site. Thus the Arbitrator found the claim to be partially justified in view of delay beyond the contract period but found the claim to be on the higher side. He also found that no specific details have been supplied by either party in respect of the aforesaid claim although he found that the plant, machinery and watch and ward staff remained idle. Thus considering all the circumstances, nature of works and all possible factors, the Arbitrator awarded Rs. 75,000. 00 in favour of the petitioner.

( 6 ) THE respondent stated in the objections that the Arbitrator has only indicated the conclusions reached by him and he has failed to disclose his thought process and also to give reasons as to how he has arrived at the awarded amount. It is further indicated in the objections that although the Arbitrator was required to give reasons for his award no reason has been provided by the Arbitrator while arriving and/or computing the awarded amount.

( 7 ) THE afor

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