1992 Supreme(Del) 283
High Court Of Delhi
P.K.RAMAIAH AND COMPANY - Appellant
Versus
NATIONAL THERMAL POWER CORPORATION LIMITED - Respondent
Suit 919A of 1991
Decided On : 05/16/1992
An interim award passed after considering claims and counterclaims is valid.
Headnote:
ARBITRATION - ACT SECTION REFERRED - SECTION 30, 35 - INTERIM AWARD - CONSIDERATION OF CLAIMS AND COUNTER-CLAIMS - MEANING OF CONSIDER - SCOPE AND AMBIT - INTERIM AWARD PASSED AFTER CONSIDERING CLAIMS AND COUNTER-CLAIMS - VALIDITY.
Fact of the Case:
In an arbitration proceeding, an interim award was challenged on the ground that it was given without considering the counterclaims and that the arbitrator wrongly considered disputed points as admissions.
Finding of the Court:
The court held that the interim award was valid as the arbitrator had considered the claims and counterclaims before passing the award. The court interpreted the word "consider" to mean "to view attentively, to survey, examine, inspect, to look attentively, to think over, meditate on, give need to, to take note of, to think deliberately, to think oneself, to reflect". The court also held that the arbitrator is the sole judge of the quality and quantity of the evidence and it is not for the court to question the arbitrator's findings on the evidence.
Issues: Whether the interim award was valid when it was passed without considering the counterclaims.
Ratio Decidendi: The court held that the interim award was valid as the arbitrator had considered the claims and counterclaims before passing the award. The court interpreted the word "consider" to mean "to view attentively, to survey, examine, inspect, to look attentively, to think over, meditate on, give need to, to take note of, to think deliberately, to think oneself, to reflect". The court also held that the arbitrator is the sole judge of the quality and quantity of the evidence and it is not for the court to question the arbitrator's findings on the evidence.
Final Decision: The court made the interim award the rule of the court and passed a decree in terms thereof.
( 1 ) [ed, facts : In arbitration between parties, Mr. V. S. Deshpande retired C. J. , Delhi gave an interim award on 15. 1290. Respdt. challenged it on the ground that it was given without considering his counter claims and also the arbitrator wrongly thought disputed points to be admissions. Petitioner relied upon K. V. George vs. Secy. AIR. 1990. SC. 53]. After detailing above. Judgment is : (7b) In K. V. George case observations are :
"it is not disputed that the Arbitrator did not at all consider the counter-claims the arbitrator did not at all consider the counter claims of the respondent in making the award. It is the duty of the Arbitrator while considering the claims of the appellant to consider also the counter-claims made on behalf of the respondents and to make the award after considering both the claims and counter claims. This has not been done. . . . . . ".
( 2 ) WHAT do we find from the observations extracted above ? It is that where there are claims and counter-claims, court (?) must make the award only after considering the claims and the counter-claims and that if the court (?) makes award without considering at all the counter-claims, such an award would be wholly illegal. It is significant to note that the Supreme Court has no where laid down that where there are claims and counter-claims no interim award can be passed in any situation. In fact the judgment does not relate to interim awards. It relates to a case where an award was passed on the claims made without considering t counter claims. In short thus, where there is no prohibition contained in the arbitration agreement or any where prohibiting the arbitrator from making an interim award, the mere fact that there are claims and counter-claims, would not prevent the arbitrator from proceeding to make an interim award. By an interim award the arbitrator has to decide a part of the disputes referred to him. He may decide only some of the issues or only some of the claims referred. (See Anand Prakash vs. Asstt. Registrar, Co-op. Societies AIR 1968 All. 22 ). Of course, in view of what has been observed by the Supreme Court, the interim award must also be made only "after considering both the claims and counter-claims. "
( 3 ) WHAT do we mean, in the context of the case, by the word "consider" ? Obviously, the word "consider" cannot mean "to finally decide," because, if the arbitrator is required to finally decide and adjudicate upon both the claims as well as the counter-claims then the award passed after such adjudication would not be an interim award. Thus, once it is accepted that there can be an interim award even where there are both claims and counter claims, then it has to be taken that at the stage of such an interim award both the claims and counter-claims are not finally decided and determined in their totality and that some claims or counter (?) are left out to be decided or adjudicated upon at a later stage. After all, the very expression "interim award" implies an award which decides a part of the claim or counter-claim or an issue of liability. Thus, if the word "consider" cannot, in the context of the case, be taken to mean "to finally decide". What does it then signify ?
( 4 ) ACCORDING to Shorter Oxford Dictionary the meaning of the word "consider" is "to view attentively, to survey, examine, inspect (arch), to look attentively, to think over, meditate on, give need to, to take note of, to think deliberately, to think oneself, to reflect".
( 5 ) ACCORDING to Words and Phrases- Permanent Edn. Vol. 8-A, to "consider" means to think with care, to fix a mind upon with a view to careful examination, to ponder ; study ; meditate upon, think or reflect with care.
( 6 ) BLACK s Law Dictionary defines "consider" to mean. To fix the mind on, with a view to carefully examine to inspect. To deliberate about and ponder over. To entertain or give heed to.
( 7 ) AS per Webster s New International Dictionary "consider" means to view attentively