LAWS(CHH)-2013-10-30

UNION OF INDIA Vs. JITENDRA KUMAR CHAWADA

Decided On October 23, 2013
UNION OF INDIA Appellant
V/S
Jitendra Kumar Chawada Respondents

JUDGEMENT

(1.) The appellants have preferred this appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (henceforth "the Act of 1996") against the order dated 12-10-2011 passed by District Judge, Bilaspur in MJC Case No. 25/2008. The brief facts in nutshell required for adjudication of this appeal are as under:--

(2.) Mr. R.S. Patel and Ms. Mamta Sinha, learned Counsel appearing for the appellants would submit that award passed by the Arbitrator directing payment of interest on the security amount as affirmed by the Trial Court is absolutely illegal in view of the fact that as per Clause 16(3) of the General Conditions of the Contract and Standard Specifications, 2001 issued by the South Eastern Railway, no interest will be payable upon the Earnest Money and Security Deposit or amounts payable to the Contractor under the contract and, therefore, part of award by which interest has been awarded as well as order of the Trial Court deserves to be set aside.

(3.) On the other hand, Mr. D.K. Tiwari, learned Counsel appearing for the respondent would submit that the order directing the payment of interest by the learned Claims Tribunal as affirmed by the learned Trial Court is absolutely justified in granting interest, which does not call for any interference.