ANAND PRAKASH UJJAIN Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) A dispute having arisen between M/s. Anand Prakash and Brothers, Ujjain, a firm of Contractors (hereinafter referred to as the 'appellant') and the State of Madhya Pradesh (hereinafter referred to as the 'respondent-State') with regard to certain matters arising out of construction of the main earthen Bandh of Komcha Project in district Guna, the matter was referred to a sole arbitrator, who gave his award on April 9, 1982.

(2.) THE appellants had claimed a total amount of Rs. 14,10,406/- THE break-up of this figure is as under :-S. No.Items of claimAmount claimed1.Lead of earth-work not paid properly... Rs. 6,87,804/-2.Thick jungle clearance at quarries not paid... Rs. 3,695/-3.Extra work got done, not paid... Rs. 1,626/-4.List of earth work not paid correctly... Rs. 7,15,281/-Total:- Rs. 14.10.406/-It is the case of the appellant that a claim for interest at the rate of 12 per cent per annum on the aforementioned amount was made and it was duly referred to the arbitrator. This is, however, disputed by respondent-State. THE arbitrator passed a non-speaking award on 9th of April, 1982 holding that the respondent-State of Madhya Pradesh, was liable to pay a sum of Rs. 8,82,319.85 p. only. THE arbitrator also allowed interest at the rate of 12 per cent per annum on the aforementioned amount. This interest was payable on the principal amount from 10th of April, 1974 being the date of completion of work by claimants to 9th of April, 1982, the date of making of the award.

(3.) THE respondent-State of Madhya Pradesh felt satisfied with the decision given by the District Judge, Guna, whereas the appellant formed a view that the interest from April 10, 1974 to April 9, 1982 was wrongly denied. Accordingly, the present appeal was preferred before this Court.