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High court should assign reasons while rejecting applications for leave to appeal

The Supreme Court, in State of Rajasthan vs. Firoz Khan @ Arif Khan, has reiterated that a High Court, while passing orders rejecting the application for leave to appeal before it under Section 378 (3) of the Code of Criminal Procedure, should assign reasons for such rejection. Allowing the appeal by State of Rajasthan against an High Court order refusing to grant leave to file appeal before it against an acquittal by Trial Courtin a murder case, the Apex court bench comprising of Justices Abhay Manohar Sapre and Ashok Bhushan observed that the instant case is a clear case of total non-application of mind to the case by High Court. The High Court had passed the following order ““Heard. No case for grant of leave is made out. Accordingly, the leave to appeal stands dismissed.” ASSIGN REASONS WHILE REFUSING LEAVE TO APPEAL Referring to State of Maharashtra vs. Sujay Mangesh Poyarekar, the Court said: We are constrained to observe that the High Court grossly erred in passing the impugned ...

Arbitrator not bound to give reasons

The Supreme Court has dismissed the appeal of Indian Rare Earths Ltd challenging the arbitration award in its dispute with Unique Builders. It stated that the award was given without providing reasons. Therefore "it is not permissible for the court to probe into the mental process of the learned arbitrator." The arbitrator is not bound to give reasons unless it is specified in the contract or there is a statute binding on him or the court orders so. In this case, the dispute over the tax content in payment was decided by arbitration and the builder's demand was drastically reduced by the arbitrator. Therefore, the government company could not challenge the award, the Supreme Court said while upholding the Orissa High Court view. Article referred: http://www.business-standard.com/article/opinion/higher-price-in-re-auction-not-legal-115082300797_1.html