MOHINDER PAL SINGH Vs. NORTHERN RAILWAY

JUDGEMENT

(1.) The petitioner was allotted by the respondent, 5 cycle/scooter parking sites measuring 375 sq. mtrs., 625 sq. mtrs., 2419 sq. mtrs., 1625 sq. mtrs. and 600 sq. mtrs. respectively at Ghaziabad city side Railway Station on a total license fee of Rs.17,51,000/- for a period of two years i.e. from 1st April, 1999 to 30th September, 2000. The petitioner deposited an amount of Rs.2,91,840/- as advance license fee for four months besides security amount of Rs.1,75,100/-. The balance license fee of Rs.14,59,160/- was payable in 20 equal installments of Rs.72,958/- each. Though the petitioner deposited the requisite amounts and completed all the formalities as required, he was given possession of only three sites measuring 375 sq. mtrs, 1625 sq. mtrs. and 600 sq. mtrs. Inspite of repeated requests, the respondent failed to hand over possession of the other two sites measuring 2419 sq. mtrs. and 625 sq. mtrs. It was only on 13th September, 2000 that the possession of 4th site of 2419 sq. mtrs. was handed over to the petitioner though he had been paying license fee therefor regularly right from the very inception. Similarly, the possession of the 5th site of 625 sq. mtrs. was handed over to him on 30th September, 2000 only inspite of the fact that he had continued to pay license fee therefor also from the very beginning. Amongst other claims before the Arbitrator the petitioner sought refund of proportionate amount deposited on account of license fee for the said two sites but the respondent did not respond to his request in that regard. He eventually invoked the arbitration clause in the agreement and the disputes as set out by the petitioner in his statement of claims were thus referred to arbitration. Apart from seeking refund of the proportionate amount of license fee for the period prior to handing over of possession of the 4th and 5th sites, the petitioner also claimed an amount of Rs.1,06,870/- on account of interest @ 24% on the sum of Rs.5,43,813/- being the license fee deposited by him for the site measuring 2419 sq. mtrs. and another sum of Rs.27,345/- @24% of Rs.1,45,082/- being the license fee deposited for the site measuring 625 sq. mtrs. for the periods 1st April, 1999 to 13th September 2000 and for 1st April, 1999 to 30th September, 2000, respectively. Besides, claims on certain other counts were also made by the petitioner but the same need no mention since the petitioner at the time of hearing confined his challenge to the award only with respect to his claim on account of interest as aforesaid being not granted by the arbitrator.

(2.) The respondent denying entitlement of the petitioner to all his claims as set out in the statement of claims contested petitioner's claim to any interest as well under Claims No.4 and 5 on the plea that since the very amounts on which interest was being claimed were not payable to him, the question of payment of any interest thereon does not arise. The respondent while contesting the petitioner's claims made a counter claim of Rs.66,020/- for unauthorised use of electricity on the parking sites by the petitioner but the same was disallowed by the arbitrator.

(3.) The arbitrator made his award dated 22nd March, 2004 allowing petitioner's claims being claim No.1 and 2 directing refund of proportionate license fee to the tune of Rs.5,43,813/- and license fee of Rs.1,45,082/- deposited by the petitioner for the site 2419 sq. mtrs. and in respect of site measuring 625 sq. mtrs., respectively. The arbitrator however did not award any interest on the said amounts for the period in question falling between the date/s of allotment and handing over of possession of the 4th and 5th parking sites to the petitioner. The awarded amount on account of claims No.1 and 2 was required to be paid within 90 days from the date of publishing of the award failing that a simple interest @6% per annum was payable to the petitioner by the respondent.