N G GUNANI Vs. UNION OF INDIA

JUDGEMENT

(1.) These two cases arise out of a common judgment relating to award passed on 21.3.1988 and hence are disposed of by this common judgment.

(2.) The appellant-petitioner was the contractor of the respondent for the work of construction of road over-bridge at Ghorpuri 1 x 8.0 Msq. (1 x 15. 1 Skew) span R.C.C. Slab at MK. 5/10-11 in lieu of level crossing No. 5 between Ghorpuri and Saswad Road Stations for which agreement was entered on 4/05/1978, but the site had been handed over earlier on 13/03/1978. The contract was to be completed within nine months i.e., 12/12/1978. But it is the case of the appellant that the contract was extended three times last being up to 18/01/1980 for the reason that the respondent failed to remove obstructions upon the land. Disputes had arisen between the parties even earlier regarding payment, but ultimately, since the efforts made by the respondent for amicable settlement failed, the matter was referred to arbitration on 7.1.1981 by the respondent. The Arbitrator entered upon the arbitration on 20/01/1987. In the claim filed before the Arbitrator the appellant had laid specific claim for being allowed interest from the date of the dispute. While it is the case of the appellant that no objection was raised to the claim of interest, it is the submission of the learned Counsel for the respondent that objection, in fact, was taken in that matter. In the award, the Arbitrator, apart from determining the dues payable to the contractor, also allowed interest at the rate of 18% per annum i.e., from the date of original claim i.e., 21/03/1979 in respect of claim items 1 to 4, from 19/06/1979 inspect of claim item 5, and from 15/06/1980 in respect of claim items 6, 7 and 8. Application was made by the Arbitrator himself to make the award the rule of the Court to which the respondent filed O.P. No. 274 of 1988 seeking setting aside of the award to the extent the Arbitrator had granted interest. The application filed by the Arbitrator to make the award the rule of the court was registered as O.S. No. 509 of 1988.

(3.) The III Additional Judge, City Civil Court, Secunderabad made the award the rule of the Court except so far as the interest was concerned which part of the award was set aside. Aggrieved by the judgment, the present appeal and revision have been preferred.