N MEENAKSHISUNDARAM ADVOCATE ARBITRATOR VIII B HIGH COURT CHAMBERS MADRAS Vs. SOUTH INDIA CORPORATION P LTD

JUDGEMENT

(1.) THIRU N. Meenakshisundaram, the arbitrator/petitioner filed Original Petition of 1991 - under Sec.14, Sub-clause (2) of the Arbitration Act, 1940, hereinafter referred as the Act to receive the award passed by him dated 15.3.1991 and order notice claimant and the opposite party. Original Petition No.197 of 1991 was filed by the Chairman, Tamil Nadu Electricity Madras against the claimants, South India Corporation Private Limited, Cochin arbitrator under Sec.30 of the Act to set aside the award dated 15.3.1991 filed in Petition No.179 of 1991. Application No.2365 of 1991 in Original Petition No.179 of 1991 was filed by the South India Corporation Private Limited, represented by its Manager, S.Palaniappa to pass a decree in terms of the award dated 15.3.1991 of the arbitrator.

(2.) BRIEF facts that are relevant for the disposal of the above three matters are as follows: Civil Suit No.144 of 1979 was filed by the claimant, South India Corporation Private Cochin under Sec.20 of the Act for an order directing the Tamil Nadu Electricity Board the Arbitration Agreement dated 27.10.1967 entered into between the South Corporation Private Limited (hereinafter called as the Corporation) and the Chairman, Nadu Electricity Board (hereinafter called as the Board) into Court and refer the matter arbitration.

(3.) THE sole arbitrator who was appointed by this Court to decide the disputes between parties in accordance with the terms of the agreement, dated 27.10.1967 entered upon reference and issued notice to both parties, requiring them to file their statements to the disputes. THE disputes between the parties relate to the contract or agreement, 27.10.1967 for the supply and erection of Power House Structural Steel between columns to 10 (both inclusive) excluding Coal Bunker for the Ennore THErmal Scheme, Madras-57, according to specification No.C.990. THE claimant/Corporation filed statement setting forth the various points of disputes and differences on the claim the Board. THE Board filed its counter to the said claim statement, denying and disputing claims raised. A rejoinder was also filed by the Corporation by way of meeting out points raised in the counter filed by the Board. THE claim statement filed by the Corporation consists of five claims. According to the claimant, a total sum of Rs.6,35,999.57 p. from the Board together with interest at 18 percent per annum from the date of payment and costs of Arbitration. THE Board contested the claims. Several points consideration were framed. Point No.7 relates to the claim of interest on the amount due and if so at what rate. No evidence had been adduced on either side. THE claimants" documents have been marked Exs.C-1 to C-41 by consent and admitted in evidence. On the side of the Board, document had been produced and marked in evidence. On Point No.1, the arbitrator held that the claim made by the Corporation is not barred limitation and is well within time. On Point No.2, the arbitrator held that the excess quantity of work fabricated by claimant was 1563 tonnes. On Point No.3, the arbitrator held that the claimant was not entitled to claim additional of "Rs.292 per tonne for 1383 tonnes i.e., to say Rs.4,03,836. On Point No.4, the arbitrator held that the claimant was entitled to recover from the Board sum of Rs.54,096.30 p.m. towards the difference in cost of various articles purchased Ex.C-33 invoices in open market. On Point No.5, the arbitrator has found that the claimant was entitled to the refund Rs.1,12,814.80 p. from the Board with regard to the excess percentage charges levied and collected. On Point No.6, which relates to the claim regarding the final bill, the arbitrator held that it cannot be construed as a dispute arising under Arbitration Agreement. On Point No.7, with which we are presently concerned in all the three matters and relates to the claim of interest by the claimant/Corporation on the amount due at cent per annum from the date of claim till date of payment, the arbitrator observed under: Point No.7: THE petitioner claimed interest on the amount due at 18 per cent per from the date of claim till the date of payment. Sec.29 of the Arbitration Act deals with question of awarding interest and it runs as follows: Where and in so far as an award is for the payment of money, the Court may, in the order interest from the date of the decree at such rate as the Court deems reasonable paid on the principal amount as adjudged by the award confirmed by the decree. "This provision available in the Arbitration Act does not empower the Arbitrator to interest. It is for the Court while passing the decree confirming the award to award as it may deem fit. Hence, it is for the petitioner to move the Honourable High Court regard to interest to be awarded on the amount found due from the respondent." arbitrator passed an award in a sum of Rs.5,70,747.10 p. on various claims. However, declined to grant interest as prayed for on the ground that he is not empowered to do.