SURAT MUNICIPAL CORPORATION Vs. AMRUTLAL NAIK

JUDGEMENT

(1.) The present appeal is directed against the order dated December 20, 2000 passed by the learned Civil Judge below Kirkul Application No.2 of 1999, whereby he has ordered that on the arbitral amount of Rs.39,06,745/, the interest be paid at the rate of 18% per annum from the date of the award till realisation of the amount.

(2.) The short facts of the case are that in the year 1985 for construction of additional floors in Maskati Hospital Building, Narmad Central Library Building, the tenders were invited by the appellantCorporation.

(3.) The appellantCorporation preferred an application before the learned Civil Judge for setting aside of the award under section 30 read with section 33 of the Indian Arbitration Act, 1940. The said application came to be dismissed vide order dated September 29, 1997. The matter was further carried in appeal being First Appeal No.457 of 1998 by the appellantCorporation and vide order dated March 09, 1998, this Court did not interfere with the order passed by the lower Court for dismissal of the application for setting aside the award. Thereafter, before the decree was drawn on the basis of the award, one Kirkul Application No.2 of 1999 was preferred by the respondent praying the Court to grant interest on the awarded amount on the principle of pendente lite. The learned Judge by the impugned order dated December 20, 2000 below the said Kirkul Application directed for payment of interest at the rate of 18% per annum from the date of the award till realisation. It appears that thereafter the decree was also drawn on January 18, 2001 for an amount of Rs.39,06,745/with interest at the rate of 18% per annum. Under the circumstances, at this stage, the present appeal before this Court.