Case Note & Summary
The dispute arose from an agreement related to the construction of a High Level Bridge over the Ghaggar River, leading to arbitration due to claims made by the appellant. The Arbitrator issued an interim award on November 26, 1992, granting the appellant Rs.7.45 lacs with interest, followed by a final award on January 28, 1994, which included other claims but not Item No.1. The trial court ruled that the interim award should be made the rule of the court, while the High Court reversed this decision, stating the interim award was superseded by the final award. The appellant contended that the interim award was final and that the Arbitrator could not revise it as he had become functus officio. The court analyzed the legal principles surrounding the making and signing of awards under the Arbitration Act, emphasizing that an award is complete upon signing, regardless of notice to the parties. The court referenced several precedents to support the view that the interim award was indeed final and could not be altered. Ultimately, the Supreme Court reversed the High Court's decision, restoring the trial court's ruling that the interim award was valid and should be upheld.
Headnote
A) Arbitration - Interim Award - Finality of Interim Award - Arbitration Act, 1940, Section 14 - The court held that an interim award becomes final and binding once made and signed by the Arbitrator, regardless of whether notice was given to the parties. The High Court's view that the interim award was not pronounced was erroneous, as the Arbitrator became functus officio upon signing the award, making it impermissible for him to alter it thereafter. Held that the trial court's decision to uphold the interim award was correct (Paras 1-5).
Issue of Consideration
Whether the interim award made by the Arbitrator was final and binding despite the subsequent final award.
Final Decision
The Supreme Court reversed the High Court's decision and restored the trial court's ruling, affirming that the interim award was valid and should be made the rule of the court.
Law Points
- Arbitration
- Interim Award
- Final Award
- Functus Officio
- Section 14 Arbitration Act
- 1940
