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Report No. 76

4.48. Nature of reasons.-

Once Parliament provides that reasons shall be given, that must clearly be read as meaning that proper, adequate, reasons must be given; the reasons that are set out, whether they are right or wrong, must be reasons which not only will be intelligible, but also can reasonably be said to deal with the substantial points that have been raised. If the award in any way fails to comply with the statutory provisions, then it would be a ground for saying that the award was bad on the face of it, as Parliament has required that reasons shall be incorporated.1

It is well established that where the arbitrator gives reasons for a conclusion of law, courts can go into those reasons."2-3

1. Cf. Re Poyser & Mills Arbitration, (1964) 2 QB 467: (1963) 1 All ER 612 (616) (Megaw, J.).

2. Champsey Bhars & Co. v. J.B. Spinning & Weaving Co. Ltd., AIR 1923 PC 66.

3. S. Dutt v. University of Delhi, AIR 1958 SC 1050.

Arbitration Act, 1940 Back

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