RAIPUR DEVELOPMENT AUTHORITY ETC. ETC. versus CHOKHAMAL CONTRACTORS ETC. ETC.

RAIPUR DEVELOPMENT AUTHORITY ETC. ETC. versus CHOKHAMAL CONTRACTORS ETC. ETC.

An arbitration award under the Arbitration Act, 1940 cannot be remitted or set aside merely because it does not contain reasons, unless the arbitration agreement, deed of submission, statute, or a court order explicitly requires reasons to be given. The law remains so until amended by Parliament.

Parties
Appellant: Raipur Development Authority; Respondent: Chokhamal Contractors
Jurisdiction
India
Judgment Date
04 May 1989
Procedural Posture
Civil Appeal / Referred to Larger Bench, Returned to Division Bench
Outcome
Answered reference in the negative; cases remitted to Division Bench for disposal in accordance with law.
Legal Topics
Arbitration Awards, Reasons for Award, Natural Justice, Government Contracts
Arbitration Administrative Law Contract Law Arbitration Awards Reasons for Award Natural Justice Government Contracts

Case Brief

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Parties

Raipur Development Authority

Appellant

Chokhamal Contractors

Respondent

Procedural Posture

Civil Appeal / Referred to Larger Bench, Returned to Division Bench

Legal Issues

  1. 1 Whether an award under the Arbitration Act, 1940 is liable to be remitted or set aside merely on the ground that no reasons have been given by arbitrator or umpire.

Ratio Decidendi

An arbitration award under the Arbitration Act, 1940 cannot be remitted or set aside merely because it does not contain reasons, unless the arbitration agreement, deed of submission, statute, or a court order explicitly requires reasons to be given. The law remains so until amended by Parliament.

Court Disposition

Answered reference in the negative; cases remitted to Division Bench for disposal in accordance with law.

Orders

  • Awards not liable to be remitted or set aside solely for lack of reasons unless expressly required by contract, statute, or court order.
  • Cases sent back to Division Bench for disposal in accordance with this decision.