Award passed by the Arbitrator was non-speaking order as passed without discussing claimant’s contentions

C. Srimannarayana Vs Hindustan Petroleum Corporation Limited, SECBAD and Another (Telangana High Court)

Facts- The petitioner was appointed as a dealer by respondent no. 1 for operating a retail outlet. As per the contract terms, the respondent had an absolute right to terminate the contract on the happening of certain events.

On 05.07.2000, the respondent no. 1 issued a show cause notice to the petitioner proposing to terminate the dealership agreement on the ground that there was a change in the constitution of the petitioner firm without the written consent. The matter was referred to arbitration.

The Arbitrator passed an award observing that the termination of the dealership agreement by the respondent company was justified in terms of the dealership agreement. Being aggrieved, the petitioner filed an application under Section 34 of the Arbitration and Conciliation Act, 1996 before the District Judge. The District Judge dismissed the application filed by the petitioner and confirmed the award passed by the Arbitrator. Against this order, the petitioner filed an appeal before the High Court.

Conclusion- HC observed that the petitioner had contended before the Arbitrator and the District Court that as per the relevant clause of the dealership agreement, the respondent had to give adequate time to the petitioner to remedy the breach of the dealership agreement. The petitioner contended that no such opportunity was given to him. The Court observed that Arbitrator and the District Court had failed to address the said contentions raised by the petitioner.

Please become a Premium member. If you are already a Premium member, login here to access the full content.