UNITECH Vs. J.K. INDUSTRIES LTD.

JUDGEMENT

(1.) THIS petition under Sections 14, 17 & 29 of the Arbitration Act, 1940 (hereinafter "the said Act) read with Section 151 of CPC has been preferred by the petitioner for making the award dated 31st August 2004 a Rule of the Court.

(2.) AFTER notice of the award was served upon the respondent, the respondent filed objections to the award under Sections 30, 33 of the said Act and prayed that the award be set aside. The objections were raised by the respondent on the ground that the learned Arbitrator had misconducted himself in the proceedings and there were prima facie errors apparent on the face of the record.

(3.) THE respondent also filed six counter claims amounting to around Rs. One crore. The learned Arbitrator gave full latitude to the parties to establish their claims; and also appointed Local Commissioner for measuring the visible items of the constructed portions. After spending more than 9 years in the arbitral proceedings, he ultimately gave an award of Rs. 47 lac to the claimant towards principal amount. He awarded 15% simple interest from 1st April 1993 to 1st April 1997 and thereafter 12% simple interest from 1st April 1997 to 31st March 2002 on the principal amount and from 2002, the interest was further reduced to 9% per annum. Thus the total interest from 1st April 1993 till passing of the award was calculated and it amounted to Rs. 66,62,250/ -. The future interest of 9% on the award was allowed if the payment was not made by 31st March 2004. Rs. 3 lac was allowed as costs of Arbitration.