STATE OF RAJASTHAN versus R.S. SHARMA & CO.

STATE OF RAJASTHAN versus R.S. SHARMA & CO.

Absence of reasons does not invalidate an award unless there is an error of law apparent on the face of the award. Arbitrators cannot award interest pendente lite unless empowered by law or court proceedings. The award stands except for the portion granting interest pendente lite, which is deleted.

Parties
Appellant: State of Rajasthan; Respondent: R.S. Sharma & Co.
Jurisdiction
India
Judgment Date
16 August 1988
Procedural Posture
Civil Appeal / Supreme Court Final Judgment
Outcome
Appeal partly allowed
Legal Topics
Error Apparent on Face of Award, Interest Pendente Lite, Unreasoned Awards, Setting Aside Arbitral Awards
Arbitration Law Civil Procedure Error Apparent on Face of Award Interest Pendente Lite Unreasoned Awards Setting Aside Arbitral Awards

Case Brief

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Parties

State of Rajasthan

Appellant

R.S. Sharma & Co.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether absence of reasons in an arbitral award renders it invalid
  2. 2 Whether interest pendente lite can be awarded by arbitrators
  3. 3 Whether ambiguity and non-application of mind in award justify setting aside

Ratio Decidendi

Absence of reasons does not invalidate an award unless there is an error of law apparent on the face of the award. Arbitrators cannot award interest pendente lite unless empowered by law or court proceedings. The award stands except for the portion granting interest pendente lite, which is deleted.

Court Disposition

Appeal partly allowed

Orders

  • The decree for Rs.75,41,755 in favour of respondent-company is upheld.
  • The award of interest pendente lite is deleted.