Case Note & Summary
The dispute arose between the State of West Bengal and Sree Sree Ma Engineering regarding the silt clearance of the River Peali. The matter was referred to an arbitrator who issued an award in November 1966, but the award was unsigned. The respondent was paid Rs.32,525.62 as per the award, and a true copy was forwarded to the Court. In 1981, the respondent filed an application under the Arbitration Act, 1940 to set aside the award, which was initially dismissed by the High Court. However, subsequent proceedings led to the appointment of a new arbitrator. The Division Bench of the High Court found that while the award was filed within the extended time, it could not be made a rule of the Court due to its unsigned nature. The Supreme Court, upon appeal, recognized that the unsigned award was a formal defect and held that the Court could remit the award for signature and extend the time for the arbitrator to finalize it. The Court emphasized that the law must serve justice and not allow efforts to go to waste. Consequently, the Court extended the time by four months for the arbitrator to sign the award and remitted it for that purpose.
Headnote
A) Arbitration Law - Unsigned Award - Court's Authority to Remit for Signature - Arbitration Act, 1940, Sections 14 to 16, 28, 30 - The Court held that an unsigned award cannot be made a rule of the Court, but this is a formal defect that can be cured. The Court can extend the time for making the award and remit it for signature to serve the purpose of law and justice (Paras 71-72).
Issue of Consideration
Whether an unsigned award by an arbitrator can be made rule of the Court and if the Court can cure this formal defect by remitting the award for signature.
Final Decision
The Supreme Court extended the time for the arbitrator to sign the award by four months and remitted the award for signature.
Law Points
- Arbitration
- Unsigned Award
- Remittance
- Extension of Time
- Formal Defect
