OSWAL WOOLLEN MILLS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) IA No. 51/2005 (U/S 16, 30 and 33 of the Arbitration Act, 1940) IN ARB.P. No. 106/2004 The disputes between the parties in relation to the retention of amount by the respondent being the balance price of 5% payment and security deposit of Rs.1,19,771/- and Rs.2,35,000/- respectively was referred to the arbitration of Dr. Gita Rawat, Sole Arbitrator-I in terms of the letter dated 20.11.2003. The Arbitrator has made and published her Award dated 18.03.2004 and the petitioner aggrieved by the same has filed objections under Sections 16, 30 and 33 of the Arbitration Act, 1940 ( hereinafter to be referred to as, 'the said Act' ) to the extent that the Arbitrator has failed to award interest on the awarded amounts.

(2.) In view of the aforesaid, the controversy is extremely limited and learned counsel for the parties advanced submissions on the basis of the contents of the Award, the objections and the reply thereto in this behalf.

(3.) Learned counsel for the petitioner contends that in the concluding paragraph while making the Award in respect of reliefs (a) and (b) and granting the said two amounts, interest has been denied. The Arbitrator has observed that "The claim of interest cannot be allowed due to reasons given in para (d)". Learned counsel invited the attention of this Court to what has been set out in para (d), which reads as under: