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TMI Blog1996 (1) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... referred the matter to the arbitrator. The arbitrator after giving due consideration to the dispute made the award, Exh. P-3 dated December 19, 1989 giving some rebate on one bill only and confirmed the rest of the demand. When the appellant filed the writ petition, the High Court of Delhi in the impugned order affirmed the award of the arbitrator. Thus this appeal by special leave against the order dated March 13, 1991 made in W.P. No. 800/91. The only question raised in this appeal is whether the arbitrator is en- joined to assign reasons in support of his award. Section 7B of the Act reads thus : 7B. Arbitration-of disputes. (1) Except as otherwise expressly pro-vided in this Act, if any dispute concerning any telegraph line, ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is until the competent legislature amends the law. In the result, we hold that an award passed under the Arbitration Act is not liable to be remitted or set aside merely on the ground that no reasons have been given in its support except where the arbitration agreement or the deed of submission or an order made by the court such as the one under Section 20 or Section 21 or Section 34 of the Act or the statute governing the arbitration requires that the arbitrator or the umpire should give reasons for the award. The award need not contain the reasons . It is seen that the decision in that case is based on ward of the arbitrator under the Arbitration Act which itself is founded on an arbitration agreement. So this Court had held that when t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erests of government have come to suffer by awards which have raised eyebrows by doubts as to their rectitude and propriety., it will not be justifiable for governments or their instrumentalities to enter into arbitration agreements which do not expressly stipulate the rendering of reasoned and speaking awards. Governments and their instrumentalities should, as a matter of policy and public interest - if not as a compulsion of law - ensure that when-ever they enter into agreements for resolution of disputes by resort to private arbitrations, the requirement of speaking awards is expressly stipulated and ensured. It is for governments and their instrumentalities to ensure in future this requirement as a matter of policy in the larger public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petition filed by the appellant under section 164(2) of the Army Act, 1950 (hereinafter referred to as the Act'). The appellant held a permanent commission, as an officer, in the regular army and was holding the substantive rank of Captain. He was officiating as a Major. On December 27,3 974, the appellant took over as the Officer Commanding of 38 Coy. ASC (Sup) Type 'A' attached to the Military Hospital, Jhansi. In August 1975, the appellant had gone to attend a training course and he returned in the first week of November 1975, In his absence Captain G.C, Chhabra was the officer commanding the unit of the appellant. During this period Captain Chhabra submitted a Contingent Bill dated September 25, 1975 for Rs, 16,280 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .e. committing an act prejudicial to good order and military discipline and the third charge was also in respect Of offence under section 63 of the Act . It is, thus, settle law that reasons are required to be recorded when it affects the public interest. It is seen that under Section 7B, the award is conclusive when the citizen complains that he was not correctly put to bill of the calls he had made and disputed the demand for payment. The statutory remedy opened to him is one provided under Section 7B of the Act. By necessary implication, when the arbitrator decides the dispute under Section 7B, he is enjoined to give reasons in support of his decision since it is final and cannot be questioned in a court of law. The only obvious reme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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