DANDASI SAHU versus STATE OF ORISSA

DANDASI SAHU versus STATE OF ORISSA

The Supreme Court found the award suffered from legal misconduct, including non-application of mind, especially as the arbitrator failed to properly reference consideration of documents and allowed an excessive lump sum in relation to original and supplemental claims, and additionally included invalid interest....

Source-derived case information.

Parties
Appellant: Dandasi Sahu; Respondent: State of Orissa
Jurisdiction
India
Judgment Date
30 November 1989
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 20.3.1987 of the Orissa High Court in Misc. Appeal No. 453 of 1982
Outcome
Appeal dismissed
Legal Topics
Arbitrator's Conduct, Interest Claim, Award Validity, Legal Misconduct, Non Application of Mind
Arbitration Arbitrator's Conduct Interest Claim Award Validity Legal Misconduct Non Application of Mind

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Parties

Dandasi Sahu

Appellant

State of Orissa

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 20.3.1987 of the Orissa High Court in Misc. Appeal No. 453 of 1982

Legal Issues

  1. 1 Whether the arbitrator's award is vitiated by non-application of mind amounting to legal misconduct
  2. 2 Whether the inclusion of interest in the award prior to the Interest Act, 1978 is valid
  3. 3 Whether excessiveness of the award justifies setting it aside

Ratio Decidendi

The Supreme Court found the award suffered from legal misconduct, including non-application of mind, especially as the arbitrator failed to properly reference consideration of documents and allowed an excessive lump sum in relation to original and supplemental claims, and additionally included invalid interest. Thus, the award was set aside, and the appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • Award set aside
  • Matter remitted back to the Arbitration Tribunal constituted under section 41-A of the Arbitration Act, as amended by Orissa Act 3 of 1983