VARKEY Vs. PACIFIC PROCON LTD

JUDGEMENT

(1.) THE only question that arises for consideration in this appeal is whether the arbitrators were competent to award interest for the period prior to the date of the award. The lower Court held that they were not, and, therefore, modified the award accordingly. Hence this appeal.

(2.) THE appellant in his claim submitted before the arbitrators claimed interest "as damages and also according to the custom and usage". The respondent contend ed before them that there was 'no custom or trade practice or equity' justifying the claim for interest The appellant in his reply statement justified the claim also on ground of demand made in writing for pay ment. Parties joined issue thereon, and the arbitrators raised issue No. iii as regards the sustainability of the claim and the quantum of interest, if the claim was sustainable. Without specifically answering the 1st part of that issue relating to sustainability of the claim, and also without giving any reasons, they held that the respondent shall pay the appellant interest at 6 per cent. from the date of registered notice demanding payment, though the claim was for interest from the date of termination of the con tract.

(3.) THOUGH the respondent filed T. A. No. 5243 of 1971 under Section 30 of the act seeking to have the award set aside that relief appears to have been not pursued. However the lower Court modified the award whereby the appellant was disallowed interest up to date of the award,