TaxTMI 
TaxTMI 
1988 (8) TMI 412
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....March, 1988. The respondent's tender for construction of complete masonry dam (Civil Engineering Works) Mahi Bajaj-Sagar Project, Banswara, was accepted by the appellant for a sum of Rs.5,90,30,791 vide letter dated 29.4.1974 and a provisional agreement was entered into between the parties on 23.5.1975. The construction was commenced by the respondent-company but it did not complete the same and, it is alleged, left the work unfinished in the year 1979, which was of the value of Rs. 1,79,80,054. The letter of acceptance was dated 23.5.1975. It is stated that the respondent did not start the work in spite of written notices and, ultimately, by a letter dated 24^th December, l979 of the Executive Engineer (Dam Division), Banswara, the respond....
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....cation of the agreement and the actions taken under Clauses 2 and 3 of the conditions of the Contract, were wrongful and unjustified. However. no reasons were indicated as to how the arbitrators arrived at those findings. The respondent filed an application in the Court of the learned District Judge for making the award Rule of the Court. The appellant, however, filed an objection on the grounds inter alia that no reasons had been given by the arbitrators for the award and the amount of interest awarded was unjustified. It was further averred that the award being ambiguous, showed non-application of mind and the question as regards the plant machinery of the respondent-company lying at the dam site, were beyond the scope of the arbitrato....
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.... of the administration of justice is to ensure quick disposal of disputes in accordance with law, justice and equity. In the instant case the proceedings have long procrasticated. Indeed, the learned Judge of the High Court, after narrating the incidents from 1975 to 1985, concluded his judgment in March 1988 by observing that that was the end of the journey. He was wrong. That was only the end of a chapter in the journey and the appellant wants to begin another chapter in the journey on the plea that the award is not a reasoned one. The bargaining between the parties was entered into in 1974-75 and the award was made on 8th December, 1985 i.e. a decade after the beginning of the transaction. The law as it stands today is clear that unle....
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....the award has been made after the issue of an order by the Court superseding the arbitration or if the arbitration proceedings have become invalid under Sec. 35 of the Arbitration Act or where an award has been improperly procured or is otherwise invalid under Sec. 30 of the Act. An award may be set aside by the Court on the ground of error on the face of the award, but an award is not invalid merely because by a process of inference and argument it may be demonstrated that the arbitrator had committed some mistake in arriving at some conclusion. In that decision Shah, J. and Sarkar, J. as the learned Chief Justices then were, were of the view that it was not open to the Court to speculate, where no reasons are given by the arbitrator, as t....
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....instant case. There is, however, one infirmity in the award as sanctioned by the High Court, that is to say, the grant of interest pendente lite. The arbitrators have observed as follows : "By adjustment of interest held to be due to the Respondents with that held to be due to the Claimants on their items of claims which were not in the nature of claim for damages for breach, we hold that the Respondents do pay Rs. 17,92,957 (Rupees seventeen lacs ninetytwo thousand nine hundred fiftyseven only) as interest, to the Claimants upto the date of the AWARD. Claimants further do pay to the Respondents Rs. Nill." This was awarding interest pendente lite. This is in violation of the principles enunciated by this Court in Executive Engineer....