Arbitrator Cannot Delegate The Task Of Quantifying The Amount Of Award To A Chartered Accountant: Calcutta High Court
2 years, 5 months ago

Arbitrator Cannot Delegate The Task Of Quantifying The Amount Of Award To A Chartered Accountant: Calcutta High Court

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The Calcutta High Court has held that the arbitrator can indeed take assistance from a third party, including a Chartered Accountant, however, it cannot completely delegate the important function of quantifying the amount of award to any third party. The arbitrator had allowed the interest on delayed payment as provided under the MSMED Act and directed the respondent to place before the petitioner the amount of interest duly certified by the Chartered Accountant. The Court held that as the arbitral award does not mention any amount, therefore, the Court, to keep the soul and spirit of the section alive, had directed the petitioner to deposit Rs. The Court further held that the arbitrator, passed the arbitral award without making any effort to quantify the interest claimed or even the date from which that interest will apply is incomprehensible to a reasoned mind, therefore, the same is in teeth of Section 31 of the Act.

History of this topic

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