UNION OF INDIA Vs. PRADEEP VINOD CONST., CO.

JUDGEMENT

(1.) The present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 ("1996 Act"), challenging the award dated 16th May, 2005 passed by the Arbitral Tribunal. The only issue that has been raised in the present petition is in respect of award of interest by the Tribunal.

(2.) The submission of Ms. Geetanjali Mohan, learned counsel for the Petitioner, is that the pre-reference interest and pendente lite interest cannot be granted by the Arbitrators in view of clause 16 of the General Conditions of Contract (hereinafter, "GCC"). She relies upon the judgment of the Supreme Court in Sri Chittaranjan Maity v. Union of India 2017 (12) SCALE 216 (hereinafter, "Chittaranjan Maity") wherein the Supreme Court considered an identical clause i.e. clause 16(2) and held that interest is not payable, in view of Section 31(7)(a) of the 1996 Act.

(3.) The matter was adjourned from time to time for awaiting the decision Union of India v. M/s Pradeep Vinod Construction Co. [Civil Appeal No.2099/2017, Decided on - 3rd August, 2017] (hereinafter, "Pradeep Vinod Construction Co."), which was between the same parties. The said decision was rendered by the Supreme Court on 3rd August, 2017 wherein the award of interest was upheld. Learned counsel for the Respondent has placed on record a copy of the judgment of the Supreme Court.