Koneru Venkata Subbaiah vs Koneru Venugopal And Ors. on 13 September, 2001
In support of his contention, the learned Counsel relied upon a judgment of this Court in the case of Hemadri Cements Private limited v. Walchandnagar Industries Limited (supra), where this Court held that an unreasoned award is not valid in the light of the proviso inserted under Section 14(1) of the Act. Further as per the first proviso to Section 17, where an award is pending in the Court at the commencement of the Amendment Act or an award filed in the Court thereafter, which does not contain reasons as required by the proviso to subsection (1) of Section 14, the Court shall not pronounce the judgment according to the award but shall remit the award to the arbitrators or umpires for giving reasons. As per the terms of the third proviso, where it is not possible for the Court to remit the award to the Arbitrator or panel of the Arbitrators or umpires due to their incapacity, negligence, refusing to act or death, the Court shall set aside the same and direct the parties to initiate fresh arbitration in accordance with the terms of the agreement. In the light of the said amended provisions, the award even if it is valid is liable to be set aside, as the award in question does not contain any reasons.