How to write an Arbitration Award
The arbitrator is not required to give a detailed judgment as courts give and is only to indicate his mind as to how he has arrived at the decision in the award. As held by the Supreme Court in Indian Oil Corporation Ltd. Vs. Indian Carbon Ltd.[AIR 1988 SC 1340 : (1988)Â ]Â , it is not obligatory
“to give a detailed judgment. Short intelligible indications of the grounds should be available to find out the mind of the arbitrator for his action. The reasons should not only be intelligible but also deal with the substantial points that have been raised. When the arbitration clause required the arbitrator to give reasons and the arbitrator does give his reasons in the award, the sufficiency of the reasons depends upon the facts of the particular case. The Court does not sit in appeal over the award and review the reasons. The Court can set aside the award only if it is apparent from the award that there is no evidence to support the conclusions or if the award is based upon any legal proposition which is erroneous.”
6. The arbitrator has after setting out the history of the case mentioned various factors on the basis of which he has drawn his conclusions in the award. Thus, the reasons for the conclusions are those factors mentioned in the award which indicated how the arbitrator acted and why he acted in that manner. This is sufficient, as held by the Supreme Court, to meet the requirements, even if it be that reasons should be stated in the award. The learned counsel for the objector has not pointed out any error in those reasons. The only argument is that the reasons have not been given. On the facts I do not agree with the submissions of learned counsel for the objector. Indeed no proposition of law was stated in the reasons. However, the arbitrator was not required to so state propositions of law. In my view, the objections that no reasons have been given are without any substance.