Law:

Section:

(a) Arbitration Act (X of 1940)-------S. 26-A [as inserted by Arbitration (Amendment) Ordinance (XV of 1981)]---Application of S.26-A, Arbitration Act, 1940---Scope---Section 26-A of Arbitration Act, 1940 was not applicable to Provincially Administered Tribal Areas. (PATA). (b) Arbitration Act (X of 1940)--- ----S. 26-A---Provision of S.26-A(1) of Arbitration Act, 1940 was mandatory, however, in case of non-compliance with such provision, Court could not straightaway set aside award, but would remit same to Arbitrator or umpire---Duty of Arbitrator or umpire to state reasons in award itself in sufficient detail to enable Court to consider any question of law arising out of award---Section 26-A of the Act contemplated a speaking award---Merely giving reasons in sketchy or summary manner would not amount to compliance with the provision---Award would not be made in vacuum, but entire evidence was required to be considered with diligent application of mind---Umpire and Arbitrator were supposed to act diligently and with vigilance---Principles. Ghandhara Industries Ltd. v. Government of Pakistan PLD 1982 Kar. 260 and Province of Punjab v. Industrial Machine Pools 1986 MLD 501 fol. (c) Arbitration--- ----Administration of justice---There must be purity in administration of justice as well as in administration of quasi justice, which is involved in adjudicatory process before Arbitrators. (d) Arbitration Act (X of 1940)--- ----Ss. 13 & 30(a)---Arbitrator, conduct of---Arbitrator after entering into arbitration must not be guilty of any act, which could possibly be construed as indicative of partiality or unfairness. (e) Arbitration Act (X of 1940)--- ----S. 26-A---Award to set out reasons---Expression "sufficient detail/reasons" and "application of mind" to determine controversy---Not synonymous and interchangeable. (f) Arbitration Act (X of 1940)--- ----S. 8---"Umpire"---Meaning---Duty of Umpire to settle any difference arising between Arbitrators---Duties of Umpire being same as those of Arbitrator---Principles. The ordinary meaning of the word "Umpire" is a person, who is to decide upon disagreement. There is a technical meaning attached to the expression,…

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