QURESHI BROTHERS, AKHADA Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The Arbitrator awarded interest at the rate of 18% per annum, which has been reduced by the trial Court at the rate of Rs.6% per annum from the date of filing of the suit till its realization.

(2.) The point for determination of this Court is as under;

(3.) In paragraph 21 of the judgment, the trial Court has clearly observed that, "I find that the Arbitrator's award even on the point of interest cannot be set aside". In paragraph 23, it is observed that the decision of the Arbitrator about the interest of compensation is not erroneous and accordingly, the finding is recorded on Issue No. 4 in negative. Undisputedly, it was a commercial transaction and the delay in compensating losses shall attract the commercial rate of interest which could not have been denied for the reason that the Arbitrator has awarded huge amount of interest. In view of this, there was no reason for the trial Court to reduce the interest from 18% per annum to 6% per annum. The order passed by the trial Court to that effect needs to be set aside.