M/S ANAND BROTHERS P. LTD. TR. M.D. versus UNION OF INDIA & ORS.

M/S ANAND BROTHERS P. LTD. TR. M.D. versus UNION OF INDIA & ORS.

The expression 'finding' in Clause 70 of the contract requires the Arbitrator to state not only the ultimate conclusion but also reasons in support of each disputed item; an unreasoned arbitral award is invalid and must be set aside.

Source-derived case information.

Parties
Appellant: Anand Brothers P. Ltd. Tr. M.D.; Respondents: Union of India & Ors.
Jurisdiction
India
Judgment Date
04 September 2014
Procedural Posture
Civil Appeal / Appeal Against High Court Remittal of Arbitral Award
Outcome
Appeal dismissed
Legal Topics
Arbitral Award Reasons, Interpretation of 'finding' in Contract, Remittal of Award, Application of Arbitration Acts
Arbitration Arbitral Award Reasons Interpretation of 'finding' in Contract Remittal of Award Application of Arbitration Acts

Source-derived case record

Summary, issues, holding and outcome

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Parties

Anand Brothers P. Ltd. Tr. M.D.

Appellant

Union of India & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal Against High Court Remittal of Arbitral Award

  1. 1 Whether 'finding' in Clause 70 of General Conditions of Contract requires reasons in arbitral award
  2. 2 Whether High Court was right in setting aside unreasoned arbitral award

Ratio Decidendi

The expression 'finding' in Clause 70 of the contract requires the Arbitrator to state not only the ultimate conclusion but also reasons in support of each disputed item; an unreasoned arbitral award is invalid and must be set aside.

Court Disposition

Appeal dismissed

Orders

  • Arbitrator to conclude proceedings under Arbitration Act, 1940 expeditiously.
  • If current Arbitrator unable to proceed, respondents must appoint substitute within six weeks.