ANSHIRAM Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE sole question that arises for determination in this appeal filed under Section 39(1)(vi) of the Arbitration Act, 1940 (for short, "the Act") is whether the appellant is entitled to get interest on the sum awarded by the Arbitration Tribunal ("Tribunal", for short). The appellant's claim for interest was negatived by the Tribunal in its award and the said award was confirmed by the learned Subordinate Judge, Bhubaneswar in his judgment dated 19.3.1990.

(2.) SINCE the dispute lies within a narrow compass, it is not necessary to set out the case of the parties in great detail. The facts relevant for the present purpose may be stated thus : The appellant was entrusted with the word "Supply of Kiln Burnt Bricks" under agreement No. IL 74 F -2 of 1963 -64 of the Construction Division No. 1, A.E.F. Project. Certain dispute having arisen between the parties relating to the work, the appellant sought for a reference to the Arbitrator and in view of the provisions of Section 41A of the Arbitration (Orissa Amendment) Act, 1982, the dispute stood referred to the Tribunal for adjudication. The appellant claimed a sum of Rs. 1,38,082/ - from the respondent while the letter accepted the claim only to the tune of Rs. 24,518/ -. The Tribunal on consideration of the matter held that the appellant was entitled to get a total sum of Rs. 58,979/ - from the respondent in full and final settlement of all the disputes/claims between the parties and further held that out of the said sum Rs. 29,379/ - is to be recovered by the claimant in cash and the balance of Rs. 29,600/ - which is in shape of W.D.C. and loan bond should be released by the respondent in favour of the appellant. The Tribunal under claim item No. 3 in the award negatived the claim of the appellant for interest with the observation "in the facts and circumstances of the case, the claimant was not entitled to any amount by way of interest. So this claim is rejected.

(3.) SHRI B.K. Nayak appearing for the appellant submitted that the Tribunal ought to have awarded interest from the due date till the initiation of the arbitration proceeding. He conceded that the Tribunal has no jurisdiction to award pendente lite or future interest to the appellant. The learned Standing Counsel appearing for the respondent supported the decision of the Tribunal.