An arbitral award can be set aside due to inordinate and unexplained delay in its issuance, negatively impacting the rights of the aggrieved party.

ORDER :

P.B. BALAJI, J.

The award dated 30.09.2019 is under challenge under Section 34 of Arbitration and Conciliation Act, 1996 (in short 'Act').

2. I have heard Mrs.K.Aparna Devi, learned counsel for the petitioner and Mr.P.T.Ramkumar, learned Standing Counsel for the Railways. I have also gone through the records, including the impugned award of the learned Arbitrator, besides the decisions on which reliance has been placed by the learned counsel on the other side.

3. The learned counsel for the petitioner, Mrs.K.Aparna Devi, would make a preliminary argument with regard to delay in passing of the award and she would make elaborate submissions in this regard. According to the learned counsel for the petitioner, the delay in passing the award renders the award liable to be set aside, without even going into the merits. Even otherwise, she would submit that the Arbitrator, in a haste to pronounce the award, has mingled issues together without any substance or basis whatsoever and therefore, the award passed is liable to be set aside, even if not on the ground of delay. The learned counsel for the petitioner would refer to the various dates which are relevant to determine her contention with regard to delay in passing of the award.

4. According to learned counsel, the arguments were closed before the Arbitrator on 03.01.2017 and the matter was reserved for passing of the award. However, since there was a delay in passing the award, the petitioner made a mention to the Arbitrator and a fresh hearing was held on 06.01.2018 and on the same day, orders were again reserved in the matter. Subsequently also, according to learned counsel for the petitioner, there has been an inordinate delay on the part of the Arbitrator to pronounce the award.

5. The learned counsel for the petitioner would also invite my attention to the petition filed in O.P. No.759 of 2019 under Sections 14 and 15 of the Act in view of non-passing of the award within a reasonable time. She would further contend that immediately on the said OP being taken on file, the Arbitrator had hastily proceeded to pass the award on 30.09.2019 and an e-mail was sent to the learned counsel for the petitioner on 01.10.2019. Subsequently, the petitioner collected the award on 09.10.2019. The learned counsel would further submit that the Arbitrator ought to have given cogent and satisfactory reasons explaining the delay in pronouncing the award. Taking me through the award, the learned counsel would emphasise that absolutely no reasons have been assigned for the delay in passing the award and therefore, on the ground of delay, the award is liable to be set aside as has been done in the decisions which have been relied on and extracted herein below.

6. On the merits, the learned counsel for the petitioner again taking me through the award, would submit that the Arbitrator has not even ventured to give a finding, leave alone reasons for several of the claims. According to learned counsel for the petitioner, as many as 18 claims were made. However, the Arbitrator has not rendered any finding, leave alone assigning reasons in respect of claim numbers 4, 7, 8 to 12 and 16.

7. She would further state that the reason for the omission to answer the above claims is only because of the filing of the OP.No.759 of 2019 by the petitioner under Sections 14 & 15 of the Act and an immediate requirement to pass an award which has resulted in such a hasty award being passed by t