K.R. BUILDERS Vs. DDA

JUDGEMENT

(1.) THESE applications under Section 151 CPC raise an issue up to what date the Judgment Debtor was liable to pay interest to the Decree Holder.

(2.) THIS Court while entertaining the applications framed following two issues :

(3.) THE second issue "b" is about the date up to which the interest is payable. The award in question was passed under the Arbitration Act, 1940 since the reference was made to the Arbitrator under the old Arbitration Act. The Arbitrator while passing the awards dated 27.8.1996 & 12.8.1996 made an order that the Decree Holder will be entitled to 12% p.a. interest from 1.1.1994 & 16.11.1993 respectively till date of award and, interest @ 16% p.a. from the date of award till the payment of the amount or date of decree whichever was earlier. Since the award was passed under the Arbitration Act, 1940, the Decree Holder filed petitions under Section 14/17 of the Arbitration Act, 1940 and Judgment Debtor filed objections to the awards under Section 30/33 of the Arbitration Act, 1940. This Court however dismissed the objections of the Judgment Debtor vide an order dated 19.3.2002 by deciding an issue whether the objection proceedings were governed by the Arbitration Act of 1940 or the Arbitration & Conciliation Act, 1996. The Court observed that the objections had been filed under Section 30/33 of the Arbitration Act, 1940 but the plaintiff (Decree Holder) had taken the plea that the objections, if any, could have been filed only under the provisions of Section 34 of the Arbitration & Conciliation Act, 1996 as the award was passed after coming into force of the Arbitration & Conciliation Act, 1996. The Court upheld the plea taken by the Decree Holder and dismissed objections under Section 30/33 of the Arbitration Act, 1940 on the grounds that these objections were not maintainable. The court also dismissed the petition under Section 14/17 of the Arbitration Act, 1940 made by the Decree Holder on the same ground. The reason for this Court to pass such an order were the various judgments of Supreme Court holding ground at that time wherein a view was taken that if an award was passed after coming into force of the Arbitration & Conciliation Act, 1996 the provisions of the Arbitration & Conciliation Act, 1996 would govern the objections. This order of the Court became final and the objections of the Judgment Debtor were not entertained even under Section 34 since they were barred by time. However, the view of Supreme Court changed later on in decision rendered in Milkfood Ltd. v. M/s GMC Ice Cream (P) Ltd. JT 2004 (4) SC 393.