THE EXECUTIVE ENGINEER (E), BSNL ELECTRICAL DIVISION Vs. NICE DIESEL ENGINE PVT. LTD. AND ORS.
LAWS(RAJ)-2014-9-112
HIGH COURT OF RAJASTHAN
Decided on September 11,2014

The Executive Engineer (E), Bsnl Electrical Division Appellant
VERSUS
Nice Diesel Engine Pvt. Ltd. And Ors. Respondents

JUDGEMENT

M.N. Bhandari, J. - (1.) BY these writ petitions, a challenge is made to the interim award dated 04.12.2013 passed by the sole Arbitrator.
(2.) AN objection has been taken for maintainability of the writ petition. It is submitted that if petitioner -company is aggrieved by the interim award, remedy lies under Section 34 of Arbitration and Conciliation Act, 1996 (in short "Act of 1996"). A reference of Section 2(1)(c) of the Act of 1996 has been given to show that definition of "arbitral award" includes interim award. In view of definition aforesaid, interim award is nothing but an award thus can be challenged under Section 34 of the Act of 1996. The writ petition for the aforesaid would not be maintainable. A reference of Paras 38 and 73 of the judgment of Hon'ble Apex Court in the case of McDermott International Inc. v. Burn Standard Co. Ltd. & Ors., reported in : 2006(2) Arb. LR 498 (SC) has been given to show that present award is akin to preliminary decree and if one is aggrieved, it can be subject matter of challenge under Section 34 of the Act of 1996. Prayer is accordingly made to dismiss the writ petitions. The petitioner, on the other hand, argued the writ petition on merit and submitted that without adjudication of the issues, an interim award has been passed. It is nothing but giving final relief along with interest @11% per annum without adjudication. It is settled law that interim order/award should not be of the nature giving final relief otherwise nothing remains to be adjudicated while passing final award. The final relief can be given after adjudication of the dispute between the parties and it can be when not only pleadings are complete but evidence is led. In the instant case, the Arbitrator ignored the procedure while passing the interim award. In view of above, interim award is void on the face of it and for that reason, writ petition is maintainable. The petitioner -company is not required to submit objection under Section 34 of the Act of 1996 to challenge the interim award when it is void on the face of it.
(3.) HE further submits that if preliminary objection raised by the respondents is accepted, liberty be given to the petitioner to challenge interim award under Section 34 of the Act of 1996. The period spent before this court may be condoned to maintain the objection and at the same time, direction be given to the Arbitrator to pass final award.;


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