STATE OF GOA Vs. MANOHAR D HARMALKAR

JUDGEMENT

(1.) This appeal is filed against the judgment and order of the Adhoc Additional district Judge, Fast Track Court-I, South Goa, margao, rejecting the application filed by the state of Goa, the appellant herein, under Section 34 of the Arbitration and Conciliation Act, 1996, for setting aside the award dated 28/2/2003, passed by the sole Arbitrator, Shri. G. D. Kamat.

(2.) The only contention pressed by mr. Shirodkar, the learned Counsel for the appellant is as to the rate of interest awarded by the learned Arbitrator. The learned Arbitrator has allowed interest at the rate of 12% p. a. from 1-04-1990. It is the date on which the building had been completed. This rate of interest is awarded on the sum of Rs. 45,241. 28 paise in respect of claims Nos. 1 and 8 which pertain to escalation and the balance final bill. The arbitrator has awarded interest at the rate of 9% p. a. from 1/4/1990, till the date of the reference i. e. 4/10/2001 and at the rate of 6% p. a. from 5/10/2000 and until payment. Interest is awarded at the above rate in respect of claim nos. 2, 3,4, 5 and 6 totalling to Rs. 35,463. 00. The said claims are compensatory claims.

(3.) The dispute arose in respect of the contract for construction of the second floor of Government building, awarded by the appellant to the respondent contractor. The contract was awarded on 23/1/1988 for the sum of Rs. 11,59,680. 61 paise. The building was to be completed in 360 days i. e. on or before 1/2/1989. On 1/2/1989, the extension was granted by the appellant for a period of 6 months ending on 31/7/1989. The building was, however, completed on 26/7/1989.