BRIJ LAL & SONS Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a very peculiar appeal, peculiar because of the history of this case. History of this case pertains to passing of three Awards till date by the arbitrator, the details of which will be given hereafter. At the outset it may be noted that this first appeal is filed under Section 37 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as 'the Act') against the order of the court below dated 17.10.2012 by which the court below while allowing the objections under Section 34 of the Act and remanding the matter to the arbitrator for a fresh decision directed that the petitioner/appellant refund an amount of Rs.4,19,639/- which was received by the appellant/petitioner/claimant under the original Award dated 15.9.2004. The amount has been ordered to be refunded by the appellant/petitioner alongwith interest @ 18% per annum simple, which rate of interest is the only disputed aspect before this Court.

(2.) Appellant argues that since under the Award, appellant was only entitled to interest @ 9% per annum simple, the court below should not have directed refund of the amount pending the fresh decision by the arbitrator alongwith interest only @ 9% per annum simple and not @ 18% per annum simple.

(3.) The facts of the case are that the appellant was a claimant in the arbitration proceedings. The same resulted in the Award dated 15.9.2004, the first Award. By this first Award, the appellant/claimant was awarded a sum of Rs.3,12,697/- alongwith interest @ 9% per annum simple. This Award, on the objections which were filed by the appellant herein under Section 34 of the Act, was set aside by the order of Sh. Rakesh Tewari, ADJ, Delhi dated 9.12.2009 and the matter was remanded back to the arbitrator to decide afresh because proper opportunity was not given to the petitioner for proving his case. The arbitrator thereafter passed the Award dated 8.8.2011, the second Award, whereby the arbitration proceedings were terminated and Award was passed dismissing the claim petition on the ground that the appellant/petitioner had already received a sum of Rs.4,19,639/- in full and final settlement of the first Award dated 15.9.2004 i.e during the pendency of the first objections against the first Award dated 15.9.2004. The amount of Rs.4,19,639/- was received by the appellant/petitioner by a cheque on 22.3.2006. The appellant/claimant challenged this second Award dated 8.8.2011 countering that the claim petition could not have been dismissed on the ground of full and final satisfaction inasmuch as the amount was received in the year 2006 whereas the judgment which was passed by Sh. Rakesh Tewari was rendered later on 9.12.2009, and consequently the direction of the court of Sh. Rakesh Tewari, ADJ becomes final whereby the matter was to be considered on merits. It is against this second Award that the impugned order dated 17.10.2012 has been passed by setting aside the Award but simultaneously directing the appellant/petitioner to refund the amount of Rs.4,19,639/- alongwith interest @ 18% per annum simple. The appellant/petitioner accordingly contends that though there is no quarrel with the order to return back the amount of Rs.4,19,639/-, interest has to be paid on the amount of Rs.4,19,639/- not at 18% per annum simple, but only at 9% per annum simple.