1987 Supreme(Del) 214
High Court Of Delhi
ENKAY CONSTRUCTION COMPANY - Appellant
Versus
DELHI DEVELOPMENT AUTHORITY - Respondent
Suit 1057A of 1984
Decided On : 05/08/1987
ARUN SHARMA, M.L.Jain
The Court has the power to order the filing of an arbitration award under Section 151 CPC in cases where Section 14(2) of the Arbitration Act does not apply, such as when the arbitrator dies before filing the award.
Headnote:
ARBITRATION - AWARD - FILING - AUTHORIZED PERSON - DEATH OF ARBITRATOR - COURT'S POWER TO ORDER FILING UNDER SECTION 151 CPC - REASONED AWARD - MERITS OF AWARD NOT CHALLENGABLE.
Fact of the Case:
Petitioner was awarded a contract by DDA for construction work. Disputes arose and were referred to arbitration. The arbitrator passed an award in favor of the petitioner. The petitioner filed an application under Sections 14 and 17 of the Arbitration Act to get the award and proceedings filed in Court. The arbitrator died before filing the award. DDA objected to the award, arguing that it was not filed by an authorized person and was not a reasoned award.
Finding of the Court:
The Court held that the award was properly filed under Section 151 CPC, as Section 14(2) of the Arbitration Act did not apply due to the arbitrator's death. The Court also held that the award was a reasoned award and that the merits of the award could not be challenged under Section 30 of the Arbitration Act.
Issues: 1. Whether the award was liable to be set aside on the objections of DDA? 2. Whether the award was properly filed? 3. Whether the award was a reasoned award? 4. Whether the merits of the award could be challenged?
Ratio Decidendi: 1. Section 14(2) of the Arbitration Act does not exhaustively provide for the filing of awards. 2. In cases where Section 14(2) does not apply, the Court has the power to order the filing of the award under Section 151 CPC. 3. The award was a reasoned award as the arbitrator had rendered reasons in dealing with all the claims of the petitioner. 4. The merits of the award cannot be challenged under Section 30 of the Arbitration Act.
Final Decision: The Court dismissed the objections filed by DDA and made the award a rule of the court. The petitioner was entitled to a sum of Rs. 1,74,320.58 with interest at the rate of 6% from the date of the award till the date of decree.
( 1 ) BY agreement No. 16/cdv/1971-:2, the petitioner was awarded work by the Delhi Development Authority for the construction of 370/1620 DU s for LIG at Pankha Road. Certain disputes and differences arose between the parties out of the execution of this work and the same were referred by the D. D. A. by Memo No. E. M. 2 (63)/71/arbn/4060-64 dated 29. 7. 1981 for arbitration of Shri G. Subramanayam, Superintending Engineer (Arbitration), as the sole Arbitrator. The Arbitrator entered upon the reference and published his award on 11. 5. 84. The Arbitrator awarded Rs. 1,74,320. 58 to the petitioner with interest @ 6%.
( 2 ) THE petitioner filed an application under Sections 14, and 17 of the Arbitration Act on 9. 7. 84 for getting the award and the proceedings filed in Court. On 17. 7. 84, this Court issued notice to the Arbitrator Shri G. Subramanyam for filing the award and the proceedings in Court. Notice was issued for 14. 9. 84 On 14. 9. 84, the award and the proceedings were not received in Court. Notice issued to the Arbitrator was also not received back after service. The matter was adjourned to 26th October, 1984 to await the service report. On 26th October, 1984 another notice was issued to the Arbitrator for 3rd December, 1984. Again, on 3rd December, 1984 a reminder was issued for 29. 1. 85 for filing the award. On 29. 1. 85, the counsel for the petitioner brought to the notice of the Joint Registrar that the Arbitrator had since expired and as such the Member Engineering DDA may be asked to file the award and the proceedings. On this request a latter was written to the Member Engineering DDA for filing the award and the proceedings. In pursuance to this notice, the award and the proceedings were filed by Shri Umesh Parshad Bhattka, who was authorised by the Personal Assistant to Superintending Engineer (Arbitration) DDA Jhandewalan, New Delhi and it was received by this Court on 23. 3. 85. Notice of the filing of the award was given on 27. 3. 85. The petitioner was served on 26. 4. 85 and service on the respondent DDA was effected on 23. 4. 85.
( 3 ) THE D. D. A. has filed objections to the award under Sections 30 and 33 of the Arbitration Act. It is stated in the objection petition that the award was not filed by an authorised person. Shri G. Subramanayam died on 14. 8. 84 and he did not authorise anyone to file the award in the Court and as such the proceedings are wholly incompetent and no cognizance can be taken of this award by the Court. It is further contended that the award suffers from legal infirmity and is not sustainable in law. The Arbitrator has not given a reasoned award as per terms of the reference. The Arbitrator has ignored and violated the terms of the contract and other documentary evidence and has exceeded his jurisdiction in awarding the sum more than claimed by the petitioner.
( 4 ) THE petitioner has contested the proceedings. In the reply filed by the petitioner, it is denied that the award has not been filed by the authorised person. It is further denied that the proceedings are wholly incompetent and no cognizance of the award can be taken by the Court. It is further stated that the Arbitrator has given a reasoned award. The allegations of misconduct have also been denied.
( 5 ) ON the pleadings of the parties the following issues were framed :-
1. Whether the award is liable to be set aside on the objections of defendant No. 1/dda ? 2. Relief?i have heard the learned counsel for the parties and gone through the record of the case. The first contention of the learned counsel for the DDA is that the award was not filed by an authorised person and as such no proceedings can be taken on the basis of the award.
( 6 ) THE petitioner filed an application under Section 14 of the Arbitration Act on 9. 7. 84 for getting the award and the arbitration proceedings filed in Court. On 17. 7. 84, a notice was issued to the Arbitrator for filing the award and the arbitration proceedings. Ho