M/S AMBICA CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) The only issue that arises for consideration before this Court is, whether the claimant, i.e., the appellant before this Court - M/s Ambica Construction, could have been awarded interest pendente lite by the arbitrator. The arbitrator by his award dated 28.06.1999, besides awarding a sum of Rs.9,20,694/- to the claimant, held the claimant also entitled to interest pendente lite, at the rate of 15% per annum. The operative part of the award passed by the arbitrator depicting the above position is extracted below:

(2.) The Union of India, namely, the respondent before this Court, assailed the award passed by the arbitrator in the High Court of Calcutta, by preferring A.P. No. 39 of 1999. A learned Single Judge of the High Court, by an order dated 3.8.2001, affirmed the award passed by the arbitrator on 28.6.1999, including the pendente lite interest, extended to the claimant. The relevant portion of the order of the learned Single Judge is extracted below:

(3.) The award dated 28.6.1999, and the order passed by the learned Single Judge dated 8.2001 were then assailed by the Union of India, before a Division Bench of the High Court, by preferring A.P.O.T No. 678 of 2001. While disposing of the above intra-court appeal, the High Court accepted the prayer made by the Union of India, and set aside the determination of the arbitrator in awarding interest pendente lite, by observing as under: