UNION OF INDIA, REPRESENTED BY DEPUTY CHIEF ENGINEER/CONSTRUCTION, SOUTHERN RAILWAY, CALICUT Vs. SHREE JAGANNATH CONSTRUCTIONS LIMITED

JUDGEMENT

(1.) The instant petition has been filed by the petitioner/Railways under Section 34 of the Arbitration and Conciliation Act, 1996, challenging the Arbitral Award dated 12.10.2009 passed against them.

(2.) The Arbitral Award has been passed against the petitioner for a sum of Rs.4,70,011/- comprising of Rs.3,00,135/- towards the net Award amount and Rs.1,69,876/- towards interest. As seen from the petition, the petitioner has accepted to pay Rs.3,00,135/- being the net Award amount to the first respondent/claimant but disputes only the payment of interest awarded under the Arbitral Award.

(3.) The petitioner has challenged the Award primarily on the ground that under the contract entered into with respondent No.1, the petitioner is not liable to pay any interest in respect of any sum payable under the contract.