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2016 DIGILAW 188 (JK)

Techno Trading Co. v. Union of India

2016-04-12

BANSI LAL BHAT, N.PAUL VASANTHAKUMAR

body2016
JUDGMENT 1. This appeal and cross appeal arise from a common judgment of the learned Single Judge made in AA No. 156/1994 dated 10.06.2005. 2. An arbitration application was filed before this Court by Union of India challenging the arbitration award dated 16.08.1994 which was partly allowed by the learned Single Judge regarding claim Nos.. 2 and 3 and sustained the award in respect of claim Nos.1 and 4. 3. The primary contention of the Union of India before the learned Single Judge was that the award passed by the Arbitrator is a non-speaking award and the learned Single Judge while considering the said contention in one part of the order held that the arbitrator need not to pass a speaking order and in another part of the order it was held that no reason having been stated for awarding amount in respect of cLalm Nos. 2 and 3, same cannot be sustained. 4. The issue as to whether in arbitration proceedings the arbitrator's award must contain findings/reasons was referred to a Larger Bench by a 2-Judge Bench of Hon'ble the Supreme Court having regard to the divergence in the decisions on 05.01.2009. Pursuant to which, 3-Judge Bench of Hon'ble the Supreme Court in the decision reported as 2014(9) SCC 212 (M/S) Anand Brothers P. Ltd. v. Union of India and others) after considering the issue held that the arbitrator, who is deciding dispute under Clause 70 of the General Conditions of Contract must record reasons/findings for his conclusion. 5. Learned senior counsel appearing for the appellant, who was respondent before the learned Single Judge, fairly accepted the said proposition in light of the 3-Judge Bench decision of Hon'ble the Supreme Court and submitted that the award of the Arbitrator dated 16.08.1994 being without any reasons, the same may not be sustained. However, he requested this Court to set aside the decision/findings rendered by the learned Single Judge in AA No. 156/1994 dated 10.06.2005 and submitted that the matter may be remitted to the respondent to appoint new arbitrator within a given time and the arbitrator may be directed to conclude the proceedings in terms of the provisions of Jammu & Kashmir Arbitration Act, 2002 (1945 A.D.) expeditiously. 6. Learned counsel for the respondent as well as the cross objector has no objection to the said course. 7. 6. Learned counsel for the respondent as well as the cross objector has no objection to the said course. 7. In such circumstances, the appeal and cross-appeal are disposed of by setting aside the order of the learned Single Judge as well as the award of the arbitrator and the Union of India/applicant before the learned Single Judge is directed to appoint an arbitrator in case the already nominated arbitrator is unable to accept the assignment for any reason, within a period of four weeks from the date of receipt of copy of this order, who shall then enter upon the reference and conclude the proceedings within a period of six months. No costs. Appeal disposed of