| Citation | 1989 SCC (2) 721 |
| Date of Judgment | 04/05/1989 |
| Court | Supreme Court of India |
| Petitioner | Raipur Development Authority |
| Respondent | Chokhamal contractors |
| Bench | VENKATARAMIAH, E.S. (J)PATHAK, R.S. (CJ)MISRA RANGNATHVENKATACHALLIAH, M.N. (J)OJHA, N.D. (J) |
| Reference | Arbitration Act, 1940: Sections 16(1)(c), 20, 21 and 30(c), Section 28 of the Indian Contract Act, 1872Section 30 of Code of Civil Procedure |
FACTS OF THE CASE
In this case, a petition was filed regarding the dispute which aroused due to a contract through arbitration. Courts, which are established by the state can settle down any dispute arising under contract according to section 28 of the Indian Contract Act. Moreover, the Law Commission of India considered that is there any obligation on the Arbitrator or the umpire to give reasons in support of the decision reached by him.
ISSUES
- Whether an award passed under the provisions of the Arbitration Act, 1940 is liable either to be remitted under section 16(1)(c) of the Act or liable to be set aside under section 30(c)?
- Whether a dispute arising under contract can be settled through arbitration?
JUDGEMENT
The Appex court held that there is no obligation on the Arbitrator or the umpire to give reasons in support of the decision reached by him except in the condition where he is under any arbitration agreement and he has to give the reason as it is stated in that particular deed. It is at the discretion of the arbitrator whether he wants to give the reason or not. In any case where he feels like giving the reason for his decision, he is free to do so in an open court. Moreover, in case of any directions given by the court, he should abide by it and follow the given directions.
REFERENCES
This Article is written by Palak Kumari of Maharaja Agrasen Institute of Management Studies, Intern at Legal Vidhiya.
