SATWANT SINGH SODHI Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Leave granted.

(2.) In relation to the construction of High Level Bridge over river Ghaggar on Pehawa Road at Devigarh, an agreement was entered into between the appellant and the respondents. The disputes between them arose in respect of certain claims made by the appellant and the matter was referred to arbitration (respondent No. 3) pursuant to an order made by Sub-Judge (1st Class), Patiala. The appellant submitted his claim before the Arbitrator and sought for an interim award in respect of Item No. 1 with a claim for 18% compound interest from 1-2-1981 to 15-3-1992. The Arbitrator, by award made on November 26, 1992, awarded a sum of Rs. 7.45 lacs in respect of Item No. 1 with interest @ 18% compound yearly from 1-2-1981 to 15-3-1992. On January 28, 1994, the Arbitrator made another award inclusive of Item No. 1 and awarded a sum of Rs. 3.75 lacs and interest @ 12% per annum with effect from 1-2-1981 to 15-3-1992 on the amount and also in respect of other claims. The appellant made an application under Section 14 of the Arbitration Act, 1940 (hereinafter referred to as 'the Act') for making the awards dated November 26, 1992 and January 28, 1994 as the rule of the Court. The trial Court made the award as the rule of the Court holding that the interim award in regard to Item No. 1 should be made the rule of the Court and that award having covered Item No. 1 should not be taken note of in the award made on January 28, 1994. Thereby the trial Court took the view that interim award made on November 26, 1992 is liable to be made the rule of the Court with regard to Item No. 1 and that Item No. 1 of the award made on January 28, 1994 will merge in the same deciding that aspect of the matter against the respondents and in favour of the appellant. The award dated January 28, 1994 was ordered to be made the rule of the Court except for Item No. 1 for which interim award has already been granted.

(3.) Respondents Nos. 1 and 2 preferred an appeal before the High Court which was allowed by holding that the trial Court fell in error in making the interim award the rule of the Court which was superseded by the final award made on January 28, 1994.