UNION OF INDIA Vs. Y CHENNA REDDY

JUDGEMENT

(1.) O.S.No. 1021/85 was filed by the arbitrator to make the award as the rule of the court. OP No. 308/85 was filed to pass a decree in terms of the award. OP No 388/85 was filed to set aside the award. All these three OPs. have been disposed of by a common order. The court accepted the award, making it as the rule of the court in OS No. 1021/85 and awarded interest from the date of decree till the date of payment. Against OS No. 1021/85 CRP No. 423/88 is filed. Against OP No. 308/85, CRP 504/88 is filed. Against OP No. 388/85, CMA No, 208/88 is filed. All the above Civil Revision Petitions and GMA were filed by the Union of India.

(2.) THE main contention that was raised by Sri Venkata Rami Reddy the learned Standing Counsel for the Railways is that in view of the two Bench judgments of this court, awarding of interest from the date of entering reference by the arbirator till the date of decree is bad. In support of his contention the learned Standing Counsel relied upon and above two judgments of the Bench in CMA No. 292/88 disposed of on 15-11-88 and CMA No. 993/84 disposed of on 17-3-89. THEse two judgments have also been considered subsequently by the same Bench in an un-reported judgment in AAO No. 684/85 and CRP No. 1581/85 which reads as follows:

(3.) HAVING regard to the Supreme Court judgment and having regard to the fact that their Lordships have considered the provisions contained in section 3 of the Interest Act and Section 29 of the Arbitration Act 1940, it must be deemed that the Bench judgment of this court to the extent of granting interest from the date of award till the date of decree of the court has not been accepted by the Supreme Court.