Case: Steeman Ltd Vs. State Of Himahcal Pradesh

to do so vitiates the award.11. Secondly, the arbitrator has made a non-speaking award and, therefore, it is not possible to find out whether he has applied his mind to that part of the claim amounting to rupees two lakhs eighteen thousand which represented the good sized after rescinding the contract.12. Thirdly, the arbitrator has no given reasonable opportunity of meeting the case of the respondents and also in establishing the petitioners case. In support of this contention he placed reliance on Suresh Ragho Desai and Another vs. Smt. Vijaya Vinayak Ghag (1988) 4 SCC 591 ) and Rajpur Development Authority & Others vs. M/s Chokhamal Contractors & Others (1989) 2 SCC 721 ).13. And the last point is that the interest awarded was at too low a rate as the claim was for 18% and the award was at 6%. 14. So far as the first point is concerned. we do not think that the said question arises out of the present arbitration proceedings inasmuch as this Court appointed the present arbitrator to go into the disputes between the parties and the parties were directed to place before the arbitrator their respective disputes. As a matter of fact by consent of both the parties, the arbitrator framed issues for adjudication and it does not appear from the issues that the question of law not being raised was one of the issues, further the so called question of law loses its relevance, after the appointment of the new arbitrator by this Court, as indeed no act of rescinding the contract took place after this court appointed the Arbitrator. Therefore, there is no substance in the first point. 15. Regarding the second point, the facts are like this. The petitioner companys demand in the original claim under clauses I & II read as follows :- 16. The above claims were modified before the present Arbitrator which read as follows :- 17. The Arbitrator has passed the award on the basis of the amended claim as follows :- 18. The Arbitrator was in out opinion quite justified in not awarding any amount under a separate head for the property of the Company forcibly taken possession in he light of the amended claims presented before him. There is thus no substance in the argument that the claim as originally put forward regarding company property allegedly taken possession of by respondent illegally and forcibly, was not separately considered by the Arbitrator. Answer is obvious viz. no. such separate claim was made by the petitioner in the amended claim. Hence we have no hesitation to reject the second point also.19. So far as the third point is concerned, namely that the petitioner was not given reasonable opportunity to substantiate the case, we do not think that we can accept that contention after perusing the detailed minutes of the Arbitrator drawn at the sittings which extended to 10 in number. As a matter of fact, we find that the Arbitrator had called upon the petitioner Company time and again to furnish document to support the claims. But. The petitioner has only partly complied with the directions of the Arbitrator. The Arbitrator had given full and reasonable opportunity to both parties to put forward their respective claims. At the last sitting dated 5.4.85. the Arbitrator observed as follows :- "As far as oral hearing is concerned, it is closed but in case any clarifications are needed by the court after receipt of final reply from both the parties within the dates stipulated above. The parties may be summoned at short notice to seek such clarifications needed by the court." 20. Pursuant to the above, it appears the Arbitrator sent letters to both parties seeking certain clarifications. Taking advantage of that, learned counsel for the petitioner argued that the arbitrator has not given reasonable time to the petitioner to clarify the doubts. The learned counsel also invited our attention to a post-script found at the concluding part of the proceeding dated 30.5.85. The post- script reads as follows :- "That during course of hearing, petitioner requested of and interval to see the documents and give clarifications. Accordingly. The court adjourned for half an hour during the course of the proceedings. 21. According to the learned counsel, the time given by Arbitrator was totally inadequate toe clarify the doubt and therefore, there was no reasonable opportunity. As pointed out earlier, after going through the minutes of the Arbitrator drawn during in the argument. Further neither of the counsel was in a position to explain as to who made the post-script and when was it entered in the proceedings of the Arbitrator. The decisions cited by the learned counsel for the petitioner in support of his argument that want or reasonable opportunity would vitiate the award by not come to his aid as we are satisfied on the facts of the case from the record including the minutes drawn meticulously, that the Arbitrator had given full and reasonable opportunity to both parties. Accordingly we find no force in this point as well.22. As regards the last point concerning the interest, we are informed that there is no clause in the agreement regarding interest. Before the arbitrator both parties appear to have agreed on the rate of interest at 18%. However, the Arbitrator i the facts and circumstances of the case awarded interest at 6%. The agreement between the parties does not mean that the Arbitrator was bogged down to that rate irrespective of other facts and circumstances of the case on hand. We have no good reason to think that the Arbitrator has awarded interest at 6% as against 18% claim without taking into account the relevant facts and circumstances of the case. Further the jurisdiction of the Court to interfere with the award is confined to matters enumerated in Section 30 of the Arbitrator Act. We do not think that the last point resided before us would fall within the ambit of Section 30 to interfere with the award.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]14. So far as the first point is concerned. we do not think that the said question arises out of the present arbitration proceedings inasmuch as this Court appointed the present arbitrator to go into the disputes between the parties and the parties were directed to place before the arbitrator their respective disputes. As a matter of fact by consent of both the parties, the arbitrator framed issues for adjudication and it does not appear from the issues that the question of law not being raised was one of the issues, further the so called question of law loses its relevance, after the appointment of the new arbitrator by this Court, as indeed no act of rescinding the contract took place after this court appointed the Arbitrator. Therefore, there is no substance in the first point.The Arbitrator was in out opinion quite justified in not awarding any amount under a separate head for the property of the Company forcibly taken possession in he light of the amended claims presented before him. There is thus no substance in the argument that the claim as originally put forward regarding company property allegedly taken possession of by respondent illegally and forcibly, was not separately considered by the Arbitrator. Answer is obvious viz. no. such separate claim was made by the petitioner in the amended claim. Hence we have no hesitation to reject the second point also.19. So far as the third point is concerned, namely that the petitioner was not given reasonable opportunity to substantiate the case, we do not think that we can accept that contention after perusing the detailed minutes of the Arbitrator drawn at the sittings which extended to 10 in number. As a matter of fact, we find that the Arbitrator had called upon the petitioner Company time and again to furnish document to support the claims. But. The petitioner has only partly complied with the directions of the Arbitrator. The Arbitrator had given full and reasonable opportunity to both parties to put forward their respectivepointed out earlier, after going through the minutes of the Arbitrator drawn during in the argument. Further neither of the counsel was in a position to explain as to who made the post-script and when was it entered in the proceedings of the Arbitrator. The decisions cited by the learned counsel for the petitioner in support of his argument that want or reasonable opportunity would vitiate the award by not come to his aid as we are satisfied on the facts of the case from the record including the minutes drawn meticulously, that the Arbitrator had given full and reasonable opportunity to both parties. Accordingly we find no force in this point as well.22. As regards the last point concerning the interest, we are informed that there is no clause in the agreement regarding interest. Before the arbitrator both parties appear to have agreed on the rate of interest at 18%. However, the Arbitrator i the facts and circumstances of the case awarded interest at 6%. The agreement between the parties does not mean that the Arbitrator was bogged down to that rate irrespective of other facts and circumstances of the case on hand. We have no good reason to think that the Arbitrator has awarded interest at 6% as against 18% claim without taking into account the relevant facts and circumstances of the case. Further the jurisdiction of the Court to interfere with the award is confined to matters enumerated in Section 30 of the Arbitrator Act. We do not think that the last point resided before us would fall within the ambit of Section 30 to interfere with the award.