E. S. VENKATARAMIAH, M. N. VENKATACHALIAH, N. D. OJHA, R. S. PATHAK, RANGANATH MISRA
Raipur Development Authority – Appellant
Versus
Chokhamal Contractors – Respondent
Judgment
VENKATARAMIAH, J.:- The common question which arises for consideration in these cases which are very neatly argued by learned counsel on both the sides is whether an award passed under the provisions of the Arbitration Act, 1940 (hereinafter referred to as the Act) is liable either to be remitted under section 16(1)(c) of the Act or liable to be set aside under section 30 (c) thereof merely on the ground that no reasons have been given by the arbitrator or umpire, as the case may be, in support of the award.
2. Ordinarily all disputes arising under a contract have to be settled by Courts established by the State. Section 28 of the Contract Act, 1872 provides that every agreement by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights, is void to that extent. Exception 1 to the said section 28, however, provides that the said section shall not render illegal a contract by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subject
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