An Arbitrator's award must be set aside if the Arbitrator fails to give reasons for his conclusions and to indicate his thought process in arriving at the award.

Dr. M. K. Sharma, J.

( 1 ) THE present suit has been registered after the Arbitrator filed his award in this Court alongwith the records of the arbitration proceedings. After registration of the suit notice was issued to the parties intimating them about the filing of the award and to file objections, if any, within the statutory time limit.

( 2 ) ON service of notice on the parties the respondents filed their objections under Sections 30 and 33 of the Arbitration Act against the award passed by the Arbitrator on 20. 10. 1994. The petitioner however, did not file any objection againstthe award.

( 3 ) IT is admitted position that the Arbitrator who dealt with the arbitration proceedings was the named Arbitrator and a technical person. Although the respondents have filed their objection as against almost all the claims decided by the Arbitrator yet during the course of hearing the main thrust of argument advanced by learned Counsel for the respondents was directed against the decision of the Arbitrator as against claims No. 2,3,5 and 6. However, sines the learned Counsel appearing for the respondents also made his submissions in respect of the other claims as decided by the Arbitrator as well, I propose to deal with the arguments advanced by the learned Counsel for the respondents as against all the objections raised in the objection petition filed by the respondents. None appeared on behalf of the petitioner at the time of arguments. However, since the objection is of the respondents, I proceed to decide the same.

CLAIM No. 1:

( 4 ) THE petitioner claimed Rs. 18. 494. 00 as refund of rebate as contingent Conditions governing rebates were not fulfilled by the respondent in respect of the following issues- (a) for regular monthly payments: Rs. 9,245. 00; (b) for final bill payment : Rs. 6,163. 00; (e) for refund of security deposit: Rs. 3,082. 00 and (d) for timely sanction of EI/si: Rs. 4. 00. As against the aforesaid claims the Arbitrator has awarded Rs. 15,096. 00 in favour of the petitioner. The Arbitrator, while giving his decision as against the aforesaid claim and awarding Rs. 15,906. 00 has given reasons and the learned Counsel appearing for the respondents could not make out any case for interference with the said decision of the Arbitrator. No mistake or error apparent on the face of the record could be shown and established by the respondents and, therefore, the decision of the Arbitrator against claim No. 1 is upheld.

CLAIM No. 2:

( 5 ) IN respect of claim No. 2 the petitioner claimed Rs. l,51,892. 00 on account of final bill and the Arbitrator ha? accepted the claim in full and awarded Rs. 1,51,892. 00 against the aforesaid claim in favour of the petitioner. I have been taken through the award passed by the Arbitrator against the aforesaid claim and on perusal of the same I find that the said amount was claimed as an extra amount for extra item of work. According to the Arbitrator the extra amount against main disputed items is payable for the agreement item No. 5. 1 - Stone veneering, which according to the Arbitrator is an extra item payable at rate under Clause 12 (v) of the agreement. The Arbitrator has held that the rate paid in R. A. bills is Rs. 154. 85 for quantity of 454. 77 Sq. Mtrs. as against correct rate of Rs. 324. 00 per sq. mt. and that the final quantity of work done is 519. 19 sq. mtrs. and thus extra amount payable works out to Rs. 97,796. 00 payable on that account.

( 6 ) THE other extra amount awarded by the Arbitrator is in respect of quantities of other main agreement items viz. item amounting to Rs. 8,224. 80. Learned Counsel appearing for the respondent submitted that the Arbitrator was required to give a reasoned award. According to the learned Counsel while giving his decision on the aforesaid claim the Arbitrator has failed to give reasons and to indicate is thought process which is sufficient ground for setting aside the award.

( 7 ) ON a perusal of the award of the Arbitrator as against th

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