STATE OF ANDHRA PRADESH Vs. S RAGHURAMA REDDY

JUDGEMENT

(1.) AT issue, are two important points for consideration arising under the Arbitration Act, 1940, namely;

(2.) THESE two matters arise out of a common judgment rendered in O.P.No.52/85 and O.S.No.54/85 by the Court of the Principal Subordinate Judge, Anantapur on 9th March, 1992. The said legal proceedings arose out of the arbitration award passed by the 2nd respondentinO.P.No.52/85 purporting to be in exercise of his powers as Arbitrator under the provisions of the Arbitration Act, 1940. While CRP No.2141/92 is directed against the judgment in O.S.No.54/85, the CMA is directed against the judgment rendered in O.P.No.52/1985. By the common judgment referred to above, the court-below has made the award of the arbitrator, rule of the court in O.S.No.54/85 by repelling the contentions raised by the appellant herein in O.P.No.52/1985 to set aside the said award.

(3.) BUT the thirst of the 1st respondent for more money out of the same transaction after tasting two successful awards in his favour, did not permit him to stop there and he then ventured to make a 3rd reference to the arbitrator named above directly and the said arbitratorwas so generous thathe immediately entered on the reference on the said suo motu dispute raised by the 1st respondent for awarding interest on the amounts awarded by the arbitrator earlier till the date of payment @ 18% per annum. The arbitration reference was sought for by the 1st respondent in that regard by making an application dated 1-12-1984 and notices were issued and after hearing both the parties, the award was passed by the arbitrator on 28-1-1985 readily accepting the claim of the 1st respondent and not heeding to the objections raised by the governmental authorities. It is this award, which was made rule of the court by the Court of the Principal Subordinate Judge, Anantapur by his judgment dated 9-3-1992 passed in O.S.No.54/85 while dismissing the O.P.No.52/85 filed for setting aside the award.