SUBHASH AGGARWAL AGENCIES vs BHILWARA SYNTHETICS AND OTHERS

The Supreme Court held that the requirement for a reasoned award is essential under the Arbitration and Conciliation Act, 1996, and that the appellate tribunal must provide reasons for its decisions. The Court found that the High Court erred in setting aside the appellate tribunal's order on the grounds of lack of reasoning, emphasizing that the principle of merger does not apply when a reasoned award exists. The Court reinstated the appellate tribunal's decision, affirming the validity of the original reasoned award made by the sole arbitrator.