Supreme Court Of India

G.D. Engineering Construction V. S Union Of India

Civil Appeal No. 1346 Of 1999. 13-01-2004

JUDGMENT

1. Heard counsel for the parties.

2. The short question that arises in this case is whether the Arbitrator was required to give reasons in the Award.

3. The High Court by the impugned judgment has set aside the Award merely on the ground that the Arbitrator had not given reasons for giving his Award. We do not find the view taken by the High Court as correct. Unless there is a statutory requirement to give reasons, an Arbitrator cannot be said to have committed illegality if no reasons are given in the Award.

4. For the aforesaid reason, the judgment and order under challenge is set aside and this appeal is allowed. There shall be no order as to costs.

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