DURGA RAM PRASAD Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) These appeals by special leave arise from the judgment of the division bench of the A. P. High court in Memo of Crossobjection in CMA No. 191 of 1975 dated 23/4/1975. The appellant had entered into a contract on 16/3/1965 to construct foodgrains godown at Karimnagar. In execution thereof, a dispute had arisen whether the appellant had executed the work as per the contract and is entitled to certain sums of money withheld by the engineer and also to the interest payable thereon at 12% etc. The dispute has been referred to the Arbitrator, a retired Chief Engineer, who in his Award dated 12/4/1972 awarded a sum of Rs. 27,776. 00 with interest at 12% on the amounts wrongfully withheld by the engineer. We are concerned in these appeals only with the entitlement of interest on the amounts withheld by the engineer. The division bench concluded, while negativing the claim for interest, thus:

(2.) We are not concerned with the correctness of the views expressed on other issues as the State did not file appeals. Shri Kanta Rao, the learned counsel for the appellant contended that when the appellant had executed the work within the period, in terms of the contract, and the officials of the respondent had wrongfully withheld the due payment, on the respective dates, the appellant is entitled to the interest on the amounts wrongfully withheld. He further contends that clause 69 of the MDSS is inapplicable to the facts of this situation. In support thereof, he places reliance on the judgment of a learned Single Judge of that court reported in APSRTC v, P. Ramanareddi.

(3.) The question, therefore, is whether the appellant is entitled to payment of interest from the respective dates on which the amounts were withheld by the concerned engineer and the dispute is arbitrable