BHARAT HEAVY ELECTRICALS LIMITED Vs. SIMPLEX INFRASTRUCTURES LIMITED

JUDGEMENT

(1.) This is a petition which seeks to challenge the Award dated 11.06.2018 on a singular ground, which is the award of interest by the learned Arbitrator for the pre-award period. This aspect of the matter was noticed by me on the previous date i.e. on 11.10.2018. On that date, notice was issued in the petition which was accepted by Mr. Ankit Raj and opportunity was given to the respondent to file a reply, confined to the aforesaid aspect. However, no reply has been filed on behalf of the respondent. To my mind, no further opportunity can be given to file a reply.

(2.) The parties before the Arbitrator, basically, advanced arguments on the interpretation of a clause incorporated in the contract obtaining between them. The said clause, which is Clause 17, reads as follows:

(3.) Despite the prohibition on payment of interest under Clause 17, the learned Arbitrator for the reasons furnished by him in paragraph 83 to 100 of the impugned Award, has come to the conclusion that the said clause does not bar payment of interest to the respondent for the pre-award period. Accordingly, the learned Arbitrator has gone on to grant interest for the pre-award period at the rate of 6% per annum on the amount retained by the petitioner. Consequently, a sum of Rs.1,95,31,608/- has been awarded in favour of the respondent for the period commencing from 25.02.2015 and ending on 14.11.2016.