JAGAN NATH ASHOK KUMAR Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) THE present Appeal impugns the Order dated 21.11.2005 passed by the Execution Court, declining the prayer of the present Appellant seeking pre -suit and pendente lite interest on the Arbitral Award published by the learned Arbitrator on 25.9.1997. This was pursuant to the Order dated 19.5.1997 passed by the Division Bench of this Court remanding the matter for reconsideration. The plea of the Appellant before the Execution Court and also before us has been that the Award dated 25.9.1997 is only a part of the claim earlier awarded by the learned Arbitrator vide Order dated 22.3.1991. Thus, the two Awards had merged and that the Order dated 7.7.1994 whereby the learned Single Judge was pleased to allow the pre -suit and pendente lite interest at the rate of 12 per cent per annum from the date of the Award would apply on the subsequent Award dated 25.9.1997 as well.

(2.) MR . Ram Kumar Gupta, Partner of the Appellant Firm, who has appeared in person, has sought to urge that vide Award dated 25.9.1997, the learned Arbitrator awarded a sum of Rupees 3,19,333/ - as pre -suit and pendente lite interest which would have, in fact, been payable on 22.3.1991 and thus making him entitled to interest thereon. Reliance has been placed on a decision of the Division Bench of this Hon'ble Court in DDA v. Saraswati Construction Company : 114(2004) DLT 385(DB) where it has been held that the interest awarded in lieu of compensation or damages become principal amount for which the party would be entitled for interest on account of it being withheld by opposite party.

(3.) WE find ourselves in agreement with the learned Counsel for the Respondent and it is our considered view that the ratio of Saraswati Construction is not attracted in the present case as in that case the Award that got merged in the original Award was the compensation under a Clause of the Agreement. In the present case, the subsequent Award was in reference to the pendente lite and pre -suit interest in which case the merger of the two Awards for levying interest cannot be allowed.