MOHINDER KAUR KOCHHAR Vs. PUNJAB NATIONAL BANK LTD

JUDGEMENT

(1.) , J.:

(2.) THIS is an appeal against the order of the learned single Judge by which he rejected the appellant's objections to the award and made it a rule of the court.

(3.) THE arbitrator had directed that a sum of Rs. 4,65,867.30 should be paid in 46 equal monthly instalments beginning from 1st July, 1868. This amount was not to. carry any interest if and as long as the instalments were paid regularly. In case of default of any two instalments, the bank was to be entitled to charge interest @ 9% per annum with monthly rest till realistion. This part of the award has been unheld by the learned single Judge. Mr. Arun Mohan has stated that no instalments as directed by the arbitrator have been paid. THE result obviously would be that interest has to be paid on Rs. 5.60.709.40 the amount which had been found by the arbitrator to be due from the firm. its partners and guarantors. No legal objection to the direction to pay interest @ 9% p. m. with monthly rest on this amount of Rs. 5,60,709.40 P is available. Mr. Arun Mohan then sought to urge was that as Section 34 of the Civil P. C. (unamended) provided for payment of interest @ 6% p. a. the same rate should have been fixed here. Now Section 34 of the Civil P. C. is not applicable in arbitration proceedings. Admittedly Section 34, Civil P. C. is not applicable to the arbitration matter and, therefore, the limitation of Section 34, Civil P. C. cannot be read into it. Moreover, it should not be forgotten that this was a loan from the bank in the normal course of commercial transactions and even the rate agreed upon was between 8 to 10% p. a. In that view the arbitrator has treated the respondent leniently by fixing the rate @ 9% p. a. We cannot say that this discretion was exercised on any arbitrary or whimsical ground and, therefore, there is no scope tor interference.