PUNJAB NATIONAL BANK Vs. BIJLEE CONSTRUCTION

JUDGEMENT

(1.) The Punjab National Bank ( PNB ), by this petition under Section 34 of the Arbitration and Conciliation Act 1996 ( Act ), challenges an Award dated 28th November 2005 passed by the sole Arbitration in the disputes between PNB and the Respondent M/s Bijlee Construction arising out of the award of the electrical work for the construction of RTC Building at Gomti Nagar, Lucknow (U.P.) by PNB in favour of the Respondent by a letter dated 10th February 1997.

(2.) Pursuant to the award of the above work, a formal contract was entered into between the parties on 3 rd March 1997. The sole Arbitrator, to whom the disputes were referred for arbitration, passed the impugned Award dated 28 th November 2005 allowing the Respondent s Claim Nos.1, 2, 4, 5, 8 and partly allowing Claim No.17 relating to interest. The learned Arbitrator granted the Respondent simple interest at 12% per annum on the amounts awarded under Claim Nos.1, 5 & 8 from 1 st January 2003 up to the date of the Award and post-award simple interest at 12% per annum from the date of the Award till the date of payment.

(3.) This Court has heard the submissions of Mr. A.P.S. Ahluwalia, learned Senior counsel for the Petitioner PNB, and Mr. Joy Basu, learned counsel for the Respondent.