M/S. ENGINEERS SYNDICATE versus STATE OF BIHAR AND ORS.

M/S. ENGINEERS SYNDICATE versus STATE OF BIHAR AND ORS.

Unless the arbitration agreement or deed of submission expressly requires reasons to be given, or unless otherwise directed or required by statute, courts cannot set aside or remit an award merely because it is unreasoned. The powers to set aside are limited to cases specified in Section 30 of the Arbitration Act, 1940.

Parties
Appellant: MIS. ENGINEERS SYNDICATE; Respondent: STATE OF BIHAR; Respondent: Respondent No.2 (not named); Arbitrator: Respondent No.4 (arbitrator, not named)
Jurisdiction
India
Judgment Date
17 January 2007
Procedural Posture
Civil Appeal / Supreme Court Final Appeal From Patna High Court Judgment in C.r. No. 2035/2001
Outcome
appeal allowed
Legal Topics
Non Speaking Award, Court Interference, Scope of Judicial Review, Remitting or Setting Aside Awards
Arbitration Non Speaking Award Court Interference Scope of Judicial Review Remitting or Setting Aside Awards

Case Brief

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Parties

MIS. ENGINEERS SYNDICATE

Appellant

STATE OF BIHAR

Respondent

Respondent No.2 (not named)

Respondent

Respondent No.4 (arbitrator, not named)

Arbitrator

Procedural Posture

Civil Appeal / Supreme Court Final Appeal From Patna High Court Judgment in C.r. No. 2035/2001

Legal Issues

  1. 1 Whether a non-speaking award (unreasoned award) can be remitted or set aside by the court in absence of stipulation in arbitration agreement requiring reasons
  2. 2 Scope of interference by court under Section 30 of the Arbitration Act, 1940

Ratio Decidendi

Unless the arbitration agreement or deed of submission expressly requires reasons to be given, or unless otherwise directed or required by statute, courts cannot set aside or remit an award merely because it is unreasoned. The powers to set aside are limited to cases specified in Section 30 of the Arbitration Act, 1940.

Court Disposition

appeal allowed

Orders

  • Order passed by Subordinate Judge and affirmed by High Court set aside
  • Award passed by arbitrator dated 04.07.1988 restored