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1987 Supreme(Del) 182

High Court Of Delhi
PRAG DISTILLED WATER AND ICE FACTORY - Appellant
Versus
MUNICIPAL CORPORATION OF DELHI - Respondent
First Appeal Order 96 of 1986
Decided On : 04/09/1987

Advocates Appeared:
ANIL AMRIT, M.R.CHAWLA, V.P.Singh

An award need not formally express the decision of the arbitrator on each matter of difference unless so specifically required.

Headnote:

ARBITRATION ACT, 1940 - S. 16(1)(A) - REFERENCE OF DISPUTES - SCOPE - AWARD - REMISSION - POWER OF COURT - DISPUTES DETERMINED BY ARBITRATOR - PRESUMPTION - AWARD SILENT ON PARTICULAR ITEM OF DISPUTE - CLAIM REJECTED BY ARBITRATOR.

Fact of the Case:

The petitioner filed a petition under Section 20 of the Arbitration Act, 1940 seeking the reference of disputes relating to fuel adjustment charges levied by the Delhi Electric Supply Undertaking. The disputes were referred to Shri S. N. Andley, a retired Chief Justice of the Delhi High Court, for arbitration. The arbitrator made an award in favor of the petitioner. The respondent filed an appeal challenging the award.

Finding of the Court:

The court held that the arbitrator had determined the real dispute between the parties, which was about the fixation of fuel adjustment charges. The court also held that the award was not silent on any particular item of dispute and that the claim in respect of such item should be taken as rejected by the arbitrator.

Issues: Whether the arbitrator had determined all the disputes referred to him.

Ratio Decidendi: The court held that the arbitrator had determined the real dispute between the parties, which was about the fixation of fuel adjustment charges. The court also held that the award was not silent on any particular item of dispute and that the claim in respect of such item should be taken as rejected by the arbitrator.

Final Decision: The appeals were partly allowed in terms of the order in FAO (OS)56/86 with no order as to costs.

S. S. CHADHA, J.

( 1 ) THE three appeals raise an additional argument relating to the scope of the reference in relation to certain disputes in regard to the fuel adjustment charges levied by the Delhi Electric Supply Undertaking made to Shri S. N. Andley, a retired Chief Justice of this Court. The common issues have been dealt with in the judgment announced today in FAO (OS) 56/86 (reported in AIR 1988 Delhi 26) and that will also dispose of the contentions raised

( 2 ) A petition under Section 20 of the Arbitration Act, 1940 seeking the reference of disputes relating to fuel adjustment charges came up before Ranganathan, J. It was stated that "it is common ground that there is an agreement between the parties which provides for arbitration in the event of such disputes. Both parties also agree that as in certain other matters between the Delhi Electric Supply Undertaking and other assessees (including the petitioner), Shri S. N. Andley, retired Chief Justice of this Court, may be appointed arbitrator to adjudicate upon the disputes set out in para 6 of the petition. It is so directed. "

( 3 ) RN. Kirpal J. who was seized of several suits including suit No. 518-A/73, in his judgment dt. May 24,1984 had earlier referred the disputes. The dispute formulated was whether the fuel adjustment charges have been fixed and are being demanded by respondent No. 2 from time to time in accordance with the Tariff for the year in question. This reference was felt as comprehensive enough to include all questions which could be raised before the arbitrator, including the question as to whether the provisional revision of such charges can be made, from time to time, with retrospective effect. The arbitrator in para 1 of the award noticed the judgment of B. N. Kirpal, J. as also in other suits referred to the arbitrator for arbitration by various orders by Ranganathan, J. It is thereafter that the scope of reference was discussed and the issues before the arbitrator for decision were formulated. It is, therefore, not correct to urge that the arbitrator never addressed himself to the reference made by Ranganathan, J.

( 4 ) THE main contention of Mr. Chawla is that the entire disputes mentioned in para 6 of the petition have not been determined by the arbitrator and the award deserves to be remitted under S. 16 (l) (a) of the Arbitration Act. The disputes mentioned in para 6 are these:

" (A) Whether the demand for the period 1978-79 and 1979-80 is not time barred ?. (b) Without prejudice to the above contention whether the demand is justified when the agreement speaks of only coal charges and not additional costs like power purchased from other source, cost of oil, etc. ? (c) Whether the present demand is justified when along with the demand the audit certificate is not given ? (d) Whether the demand is in accordance with the formula for increase agreed to between the parties ? (e) Whether the demand is justified when according to the agreement the supplementary bill should have been issued latest within one year of the accounting year ? (f) Whether the present fuel charge at the rate of 36. 61p is in accordance with the agreement and the Tariff formula. "it is clear from a reading of the disputes formulated in para 6 -that in sum and substance, they related to fixation of fuel adjustment charges and their demand from time to time in accordance with the Tar iff for the year in question. This dispute has been squarely determined by the arbitrator in his award. Some additional differences are mentioned in para 6. They are not referred to or included as contentions in the written arguments before the arbitrator. The arbitrator has not dealt with them in his award We, therefore, agree with the learned single Judge that the other points of disputes were either given up or not pressed before the arbitrator during the proceedings. If an award is silent on a particular item of dispute, then the law is that the claim in respect of such item should be taken a






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