LexSATWANT SINGH SODHI versus STATE OF PUNJAB AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A SA TW ANT SINGH SODHI v. STA TE OF PUNJAB AND ORS. MARCH 26, 1999 B [DR. A.S. ANAND, CJ. ANDS. RAJENDRA BABU, J.] Arbitration Act, 1940 : Section 14-Award made and signed by the arbitrator-Award not C delivered or pronounced or filed in the Court-Whether award becomes final-Held, an award will be complete as soon as it is made and signed by the arbitrator. Interim Award-When it will have the effect of a complete award- Whether it will have effect even after the final award is delivered-Held, D if the interim award is intended to finally determine the rights of the parties it will have the force of a complete award and will have effect even after the final award is delivered . E Words & Phrases- 'Interim Award '-Meaning of in the context of the Arbitration Act, 1940. Appellant entered into an agreement with the respondent regarding construction of High Level Bridge over River Ghaggar on Pehawa Road at Devigarh. Disputes arose between them in respect of certain claims made by the appellant and the matter was referred to arbitration pursuant to an order made by the court. The appellant submitted his claim before the Arbitrator F seeking an interim award in respect of Item No. 1. The Arbitrator made an interim award regarding Item No. 1 in favour of the appellant. Thereafter, the Arbitrator made another award in respect of all claims including Item No. 1. The appellant made an application under Section 14 of the Arbitration Act for making both the awards rule of the court which was allowed by the G trial court. The trial court held that the interim award in regard to Item No. 1 should be made the rule of the court and Item No. 1 of the subsequent award shall merge in the interim award, and the second award should be made rule of the court except for Item No. 1 for ~hich the interim award had already been granted. Against the Judgment of the trial court, Respondent Nos. 1 and 2 preferred an appeal before the High Court which was allowed by H holding that the interim award was not pronounced though it was made and 230 ... -- S.S. SODHiv. STATE 231 signed by the Arbitrator and was open to correction and it was superseded A by the final award, and that the trial court fell in error in making the interim award the rule of the court. Against the Judgment of the High Court, the appellants have filed the present appeal. The contentions of the appellant were that on the award being made by the Arbitrator in so far as Item No. 1 was concerned it was not open to the B Arbitrator to revise the award made by him earlier as he had become functus officio with regard to that particular Item of the Claim; that the award was made and signed by the Arbitrator which made the award binding and merely because no notice was given to the parties it could not be held to be invalid and the notice to the parties could be postponed; and that the interim award C having been made and being final in character it was not open for modification or alteration except in terms as provided in Section 13 ( d) of the Act. Allowing the appeals, the Court HELD : 1. The question whether interim award is final to the extent it goes or has effect till the final award is delivered will depend upon the form D of the award. If the interim award is intended to have effect only so long as the final award is not delivered it will have the force of the interim award and it will cease to have effect after the final award is made. If, on the other hand, the interim award is intended to finally determine the rights of the parties it will have the force of a complete award and will have effect even E after the final award is delivered. The terms of the first award do not indicate that the same is of interim nature. The award was made after examining the oral and documentary evidence and after considering the arguments and counter arguments. [234-G] 2. Section 14 of the Arbitration Act provides that when the arbitrator F or umpire has made his award, he shall sign it and shall give notice in writing to the parties of the making and signing thereof and of the amount of fees and charges payable in respect of the arbitration and award. In the language of the Section, an award will be c~mplete as soon as it is made and signed. Thus mere writing of an award would not amount to making of an G award. There can be no finality in the award except when it is signed because signing of the award gives legal effect t
Excerpt shown. Read the full judgment & AI analysis in Lexace.