MACHINES INDIA Vs. CHIEF ENGINEER JABALPUR ZONE

JUDGEMENT

(1.) This appeal has been filed by the appellant under Section 39 of the Arbitration Act, 1940, being aggrieved by the order dated 31.01.2008 passed by the IXth Additional District Judge, Jabalpur in M.J.C. No.47/2003 by which the interest awarded by the sole Arbitrator @ 15% per annum has been reduced to 9% per annum by the Appellate Authority namely the Additional District Judge, Jabalpur.

(2.) The only question warranting consideration in this appeal is with regard to justification of the learned District Judge in reducing the quantum of interest while considering the same in a proceeding held before him under Section 30 read with 33 of the Arbitration Act, 1940.

(3.) Shri V.R. Rao, learned Senior Advocate argued that once the Arbitrator exercising jurisdiction and in the facts and circumstances of the case had awarded interest @ 18% per annum then the learned District Judge while hearing the matter could not reduce the award of interest from 15% to 9% and only on the basis of economic condition and reforms. It is argued that a reasonable order passed awarding interest by the Arbitrator has been interfered without any justification.