DELHI DEVELOPMENT AUTHORITY Vs. JAGDISH CHANDER KHANNA

JUDGEMENT

(1.) This appeal is directed against the order of the learned Single Judge dated 22nd April, 2013 awarding future interest at the rate of 18% in terms of Sub-Section (7)(b) of Section 31 of the Arbitration and Conciliation Act, 1996. The sole submission of learned counsel for the Appellant is that the grant of future interest by the learned Single Judge in execution proceedings is not in consonance with the award dated 31.10.2008, the Arbitrator having rejected the claim for present and future interest.

(2.) By his award dated 31.10.2008, the sole Arbitrator pursuant to Claim No. 8 claiming interest at the rate of 18% pre-suit, pendente lite and future passed the following awards:-

(3.) The learned Single Judge vide the impugned order dated 22nd April, 2013 after recording the submission of counsel for the Decree Holder, being that in terms of Section 31(7)(b) of the Arbitration and Conciliation Act, 1996, the Decree Holder is entitled to interest at the rate of 18% per annum on the principal amount, i.e., about Rs. 6 Lakhs, granted the prayer of the Decree Holder for interest at the statutory rate of 18%. It may be noted at this juncture that before the learned Single Judge counsel for the Judgment Debtor made a statement that his client was agreeable to pay interest at the rate of 18% per annum as simple interest from the date of the award to the date of payment.