SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1996 Supreme(SC) 7

1996(2) Supreme 93
SUPREME COURT OF INDIA
K. Ramaswamy & G.B. Pattanaik, JJ.
Shri M.L. Jaggi -Appellant
versus
Mahanagar Telephones Nigam Ltd. & Ors. -Respondents
Civil Appeal No. 1540 of 1996
Decided on 2-1-1996
Counsel for the Parties :
For the Respondent : V.R. Reddy Addl. Solicitors General for MTNL.

IMPORTANT POINT
The arbitrator is enjoined to assign reasons in support of his award under Section 7B of Indian Telegraph Act even if questions are technical matter.

Headnote:Indian Telegraph Act, 1985-Section 7B-Arbitration of Disputes-Whether arbitrator is enjoined to assign reasons in support of his award-(Yes) (Para 8)-Dispute of excessive billing-Arbitrator had not given reasons in his award under Section 7B-Order set aside but order to applies prospectively only. (Para 9)

       

ORDER

Leave granted.

2. The respondents had issued bills for Rs. 50,219/- from 16.11.1982 to January 15, 1983 ; for Rs. 20873/- for January 16, 1983 to march 15, 1983 ; and for Rs. 9,084/- for period from September 16, 1982 to November 15, 1982. When the appellant filed the suit, an objection was raised of the availability of the remedy under Section 7B of the Indian Telegraph Act, 1985 [for short, "the Act"]. The Civil Court referred the matter to the arbitrator. The arbitrator after giving due consideration to the dispute made the award, Exh. P-3 dated December 19, 1989 giving some rebate on one bill only and confirmed the rest of the demand. When the appellant filed the writ petition, the High Court of Delhi in the impugned order affirmed the award of the arbitrator. Thus this appeal by special leave against the order dated March 13, 1991 made in W.P. No. 800/91.

3. The only question raised in this appeal is whether the arbitrator is enjoined toassign reasons in support of his award. Section 7B of the Act reads thus :

"7B. Arbitration of disputes.-(1) Except as otherwise expressly provided in this Act, if any dispute concerning any telegraph line, appliance or apparatus arises between the telegraph authority and the person for whose benefit the line, appliance or apparatus is, or has been, provided, the dispute shall be determined by arbitration and shall, for the purpose of such determination, be referred to an arbitrator appointed by the Central Government either specially for the determination of that dispute or generally for the determination of disputes under this section.

(2) The award of the arbitrator appointed under sub-section (1) shall be conclusive between the parties to the dispute and shall not be questioned in any court."

4. It is a statutory remedy provided under the Act and, therefore, in a dispute as regards the amount claimed in the demand raised, the only remedy provided is by way of arbitration under Section 7B of the Act. By operation of sub-section (2) thereof, the award of the arbitrator made under sub-section (1) shall be conclusive between the parties to the dispute and shall not be questioned in any court. The statutory remedy under the Arbitration Act, 1940, thus, has been taken away.

5. The question, therefore, is : whether it is incumbent upon the arbitrator to give reasons in support of the award. In Raipur Development Authority & Ors. v. M/s. Chokhamal Contractors & Ors.1 in paragraph 38 at page 753 at page 753 this Court had held that "having given our careful and anxious consideration to the contentions urged by the parties, we feel that law should be allowed to remain as it is until the competent legislature amends the law. In the result, we hold that an award passed under the Arbitration Act is not liable to be remitted or set aside merely on the ground that no reasons have been given in its support except where the arbitration agreement or the deed of submission or an order made by the court such as the one under Section 20 or Section 21 or Section 34 of the Act or the statute governing the arbitration requires that the arbitrator or the umpire should give reasons for the award. The award need not contain the reasons". It is seen that the decision in that case is based on award of the arbitrator under the Arbitration Act which itself is founded on an arbitration agreement. So this Court had held that when the agreement in non-statutory award between the parties voluntarily entered into did not contain a clause to make a speaking award, the need to make an award with reasons was not necessary. The Court explained the position in para 35 at pages 751-52 thus :

"But at the same time it has to be borne in mind that what applies generally to settlement of disputes by authorities governed by public law need not be extended to all cases arising under private law such as those arising under the law of arbitration which is intended for settlement of private disputes."

6. In fact the observations have b














Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top