SURAT MAHANAGAR PALIKA Vs. GOVINDBHAI DHANJIBHAI MISTRY

JUDGEMENT

(1.) The respondent-plaintiff had filed a suit for recovery of a sum of Rs. 4,00,593.75 with interest at the rate of 18% from the date of the suit till realisation. The dispute in the suit came to be referred to the arbitrator by an order of the High Court. The arbitrator made his award and the Trial Court also passed a decree in terms of the award.

(2.) The only question that arises in this matter is regarding the award of interest from the date of the suit till realisation. This was one of the prayers in the suit and it is also referred to the arbitrator. However, the arbitrator awarded interest from the date of the reference till the date of the award i.e. from 23.12.1985 to 14.7.1987. The learned trial Judge has awarded interest from the date of filing of the suit till realisation on the decretal amount. The period for which the arbitrator has awarded interest is covered by the first para of the operative order which is in terms of the award of the arbitrator and, therefore, it is excluded in the 2nd para of the operative order.

(3.) The learned Counsel for the appellant submits that the arbitrator had the jurisdiction to deal with this question and the arbitrator has chosen to award interest only from the date of the reference till the date of the award even though the interest was claimed from the date of filing of the suit till realisation and when the arbitrator has chosen not to award interest for the other period, the Court could not have gone beyond the award and passed a decree for the interest which is not awarded by the arbitrator.