Case Name : I-Pay Clearing Services Pvt Ltd vs ICICI Bank Ltd Case Reference: (2022) 3 SCC 121 Case Number: CA No. 7 of 2022 Court: Supreme Court Bench: 02 Coram: R Subhash Reddy (Author); Date: 03.01.2022
There is a difference between finding and reasons. (Para 20) While the former is a decision on an issue, the latter is the link between materials on which certain conclusions are based and the actual conclusions. Merely because an application under section 34(4) is filed, the Court is not bound to remit the matter to the Arbitral Tribunal; and the court has to exercise discretion (Para 21)
The discretionary power under Section 34(4) is to be exercised when there is inadequate reasoning OR to fill up gaps in the reasoning in support of the findings which are already recorded in the award. (Para 21) Under the guise of additional reasons and filling up gaps in the reasoning, no award can be remitted to the Arbitrator where there are no findings on the contentious issues in the award.
If there are no findings on the contentious issues in the award, or if any findings are recorded ignoring the material evidence on record, the same are acceptable grounds for setting aside the award itself. (Para 21) When it prima facie appears that patent illegality in the award by not recording reasons, the court may not accede to the request for giving an opportunity to the Arbitral Tribunal to resume arbitral proceedings (Para 21)
Refer also: Income Tax Officer, Sitapur vs Murlidhar Bhagwan Das, AIR 1965 SC 342 J Ashoka vs University of Agricultural Sciences, (2017) 2 SCC 609
See also: Section 34(4)