10 August 2021, Tuesday

3 years ago

An award cannot be remitted to consider an issue on which the tribunal gave no finding (Delhi High Court)

11 August 2021 | Bentwood Seating System P. Ltd. v. Airport Authority of India | FAO (OS) Comm. 97 of 2021 | Manmohan and Navin Chawla JJ | 2021 SCC OnLine Del 3989

In a case where the tribunal had not returned any finding on a core issue held, the single-judge was right in rejecting the argument the award should be remitted under Section 34 (4) ACA. The issue was if the purchase orders from which the dispute arose, was obtained fraudulently and, thus, the respondent had a right to avoid the contract.

The appellate court found that it was a case of “no finding” and “not the case of merely not recording reasons” for a finding. Thus, it was not a curable defect that satisfied the pre-condition for exercising power under Section 34 (4) ACA.

The court also denied a request to restrain the appellant from recovering the money paid under the award till another tribunal considered the matter. The court said it was not within its powers under Section 37 ACA to make such an order.

Read the judgment here.

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