MUNICIPAL CORPORATION OF DELHI versus JAGAN NATH ASHOK KUMAR & ANR.

MUNICIPAL CORPORATION OF DELHI versus JAGAN NATH ASHOK KUMAR & ANR.

The Supreme Court held that the reasonableness of the reasons given by an arbitrator in making his award cannot be challenged in proceedings under Article 136. The arbitrator is the sole judge of quality and quantity of evidence, and courts should not question his appraisement of evidence. There was no violation of principles of natural justice, and the award was reasonable and rational.

Parties
Petitioner: Municipal Corporation of Delhi; Respondent No. 1: Jagan Nath Ashok Kumar; Respondent No. 2 (arbitrator): S.M. Hasnain
Jurisdiction
India
Judgment Date
17 September 1987
Procedural Posture
Special Leave Petition (civil) / Decision on Leave to Appeal Under Article 136
Outcome
Special Leave Petition dismissed; leave to appeal refused.
Legal Topics
Arbitrator's Award Review, Natural Justice, Essence of Time in Contract, Evidence Before Arbitrator
Arbitration Contract Law Arbitrator's Award Review Natural Justice Essence of Time in Contract Evidence Before Arbitrator

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Parties

Municipal Corporation of Delhi

Petitioner

Jagan Nath Ashok Kumar

Respondent No. 1

S.M. Hasnain

Respondent No. 2 (arbitrator)

Procedural Posture

Special Leave Petition (civil) / Decision on Leave to Appeal Under Article 136

Legal Issues

  1. 1 Whether reasonableness of reasons in a speaking award is justiciable under Article 136 of the Constitution of India
  2. 2 Whether time was of the essence in the contract
  3. 3 Applicability of Indian Evidence Act, 1872 to arbitration proceedings

Ratio Decidendi

The Supreme Court held that the reasonableness of the reasons given by an arbitrator in making his award cannot be challenged in proceedings under Article 136. The arbitrator is the sole judge of quality and quantity of evidence, and courts should not question his appraisement of evidence. There was no violation of principles of natural justice, and the award was reasonable and rational.

Court Disposition

Special Leave Petition dismissed; leave to appeal refused.

Orders

  • Petitioner and respondent to bear their own costs in the Supreme Court.
  • Respondent is entitled to costs of challenge up to High Court.