LAW FOR ALL

Arbitration - clause 70 of General conditions of contract - the term "FINDING" - interpretation - High court set aside the award of arbitrator due non-speaking order - D.B. confirmed the same - Apex court held that The expression ‘finding’ appearing in Clause 70, therefore, needs to be so construed as to promote that object and include within it not only the ultimate conclusion which the Arbitrator arrives at but also the process of reasoning by which he does so. Clause 70 could not, in our opinion, have meant to be only a wooden or lifeless formality of indicating whether the claim is accepted or rejected.and further held thatIn Build India Construction System (supra) this Court noted in no uncertain terms that the validity of the award had not been specifically questioned on the ground of its having been given in breach of any obligation of the Arbitrator to give reasons as spelled out by the arbitration clause The plea regarding the Award being non-speaking was raised for the first time before the Division bench in appeal. This Court in that backdrop held that the Division Bench fell in error in entertaining and upholding such a plea at such a late stage and held that Build India Construction System (supra) as an authority for the proposition that Clause 70 of the General Conditions of the Contract did not oblige the Arbitrator to record reasons. The decision must, therefore, remain confined to the facts of that case only and declared that Gora Lal’s case only holds the filed and dismissed the appeal =CIVIL APPEAL NO.76 OF 2009 M/s Anand Brothers P. Ltd. TR. M.D. …Appellant Versus Union of India & Ors. …Respondents = 2014 - Sept.Month - http://judis.nic.in/supremecourt/filename=41879