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1990 Supreme(Del) 206

High Court Of Delhi
C.L.MISRA - Appellant
Versus
NEHRU BHAWAN TRUST - Respondent
Interim Application 2309 of 1986
Decided On : 07/27/1990

Advocates Appeared:
DALJIT SINGH, M.S.Vinayak, P.B.AGRAWAL, S.L.VATEL

A non-speaking award cannot be set aside on the ground that the arbitrators failed to consider a counter-claim, ignored an architect's certificate, or relied upon inadmissible evidence, as the court cannot review the evidence or the reasoning of the arbitrators.

Headnote:

ARBITRATION - AWARD - SETTING ASIDE - COUNTER-CLAIM - CONSIDERATION BY ARBITRATORS - INFERENCE FROM AWARD - LUMP SUM AWARD - ARCHITECT'S CERTIFICATE - IGNORING - ADMISSIBILITY OF EVIDENCE - NON-SPEAKING AWARD - COURT'S POWER TO REVIEW.

Fact of the Case:

A non-speaking award was challenged by the objector on the grounds that the counter-claim filed by the objector was not considered by the arbitrators, the architect's certificate was ignored, and inadmissible evidence was relied upon by the arbitrators.

Finding of the Court:

The court held that the award could not be set aside on the objections raised. It inferred from the award that the arbitrators had considered the counter-claim and rejected it, as they had awarded a lump sum amount to the petitioner. The court also held that the award could not be set aside on the ground that the architect's certificate was ignored, as the certificate was given after the petitioner had invoked the arbitration clause and was of no value. The court further held that the award could not be set aside on the ground that inadmissible evidence was relied upon, as the award was non-speaking and the court could not visualize what particular evidence was believed by the arbitrators.

Issues: 1. Whether the award is liable to be set aside on any one of the grounds taken in the objection petition?

Ratio Decidendi: 1. The court held that the award could not be set aside on the objections raised. It inferred from the award that the arbitrators had considered the counter-claim and rejected it, as they had awarded a lump sum amount to the petitioner. The court also held that the award could not be set aside on the ground that the architect's certificate was ignored, as the certificate was given after the petitioner had invoked the arbitration clause and was of no value. The court further held that the award could not be set aside on the ground that inadmissible evidence was relied upon, as the award was non-speaking and the court could not visualize what particular evidence was believed by the arbitrators.

Final Decision: The court dismissed the objection petition and made the award a rule of the court to the extent that the objector was to pay Rs. 77,290j43p to the petitioner-claimant, but without interest.

P. K. BAHRI, J.

( 1 ) C. L. Misra, sole proprietor of M/s. C. L. Misra and Associates, had entered into a contract with Nehru Bhawan Trust. Certain disputes having arisen between the parties with regard to the said contract, the petitioner had filed a petition under Section 20 of the Arbitration Act for appointment of arbitrator and for reference of the claims of the petitioner for decision to such arbitrator. The Court had allowed the petition on March 12, 1980 and had made reference to the arbitrators to be nominated by the respondent. The two arbitrators. namely, S/shri K. P. Sharma and S. G. Pradhan had given the non-speaking award dated August 12, 1985, awarding Rs. 77,290/43p to the petitioner against the respondent with the directions that the amount be paid within one month failing which the respondent will be required to pay interest @12% per annum till payment [or on decree whichever is earlier. The petitioner filed the application for filing of the award and for making the award rule of the court.

( 2 ) ON notice being issued to the arbitrators, the arbitrators have filed the award and the proceedings in this Court of which due notice was given to the parties and the respondent has filed objection petition LA. 2309186 under Sections 30 and 33 of the Arbitration Act. Various objections have been taken in the petition In challenging the award. The petitioner has filed the reply to these objections and following issues were framed :

1. Whether the award is liable to be set aside on any one of the grounds taken in the objection petition? 2. Relief.

( 3 ) ISSUE NO. 1: The matter was required to be decided by affidavits and the affidavits were filed. However, the learned counsel for the objector has raised his contentions based on the contents of the award and the evidence led before the arbitrator.

( 4 ) THE first contention raised by the learned counsel for the objector is that a counter-claim had been filed by the objector but it appears from the award that the arbitrators have not at all taken into consideration the said counter-claim and had not given any decision on the counter-claim and thus, the award stands vitiated and the matter is required to be remanded back to the arbitrators for deciding the counter-claim of the objector.

( 5 ) IN reply to this objection it was pleaded by the petitioner that in fact, the counter-claim was not referred for decision to the arbitrators and in the alternative a plea has been raised that the counter-claim and the evidence led in that connection were duly considered by the arbitrators. In Laminated Packing? v. Union of India, 1983 Rajdhani Law Reporter (Note) 8. (l) a Single Judge of this Court had held that once the disputes are referred to arbitrator under a petition filed by one of the parties under Section 20 of the Arbitration Act the opposite party has a right So file the counter-claim before the arbitrator. So, there is no merit in this contention that the counter-claim put forward by the objector before the arbitrators could not have been entertained by the arbitrators.

( 6 ) THE short question which, thus, arises for decision on this point is whether the arbitrators would be deemed to have considered the counter-claim of the objector and rejected the same or not ? The award given in the present case is a non-speaking and brief one. It is mentioned in the award that these arbitratortors have been constituted under powers vested vide agreement dated January 20, 1976, made between the parties and after having deliberations in the matter during number of meeting; and concluding sittings held on august 12. 1985, pronounced the award unanimously. It was recited in the award that after hearing the claimants and the respondents on (1) the claims (2) reply to the claims, and (3) rejoinder by the claimants and examining of the materials and factual evidence including statements and records produced before them by the parties concerned and having allowed arguments, cross-questions











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