SIGMA DATA Vs. TECH UNION OF INDIA

JUDGEMENT

(1.) Mr. Pangari, learned senior advocate appears on behalf of appellant and submits, his client is aggrieved by impugned judgment dtd. 8/8/2019 passed by the Court below setting aside award of interest in award dtd. 31/8/2017. He submits, the award was for principal and interest. Sub-sec. (7) in sec. 31, Arbitration and Conciliation Act, 1996, by clauses (a) and (b) empowered the arbitrator to grant interest. There can be no dispute with the statutory mandate. Proof of entitlement was established by his client on producing statement from the banker and thereupon there was award for interest. The Court below, on erroneous appreciation of principal and interest, erred in setting aside that part of the award. He submits further, there was also award for fees and costs, on which the Court below did not say anything and, this Court in appeal should clarify that there was no interference on the award for fees and cost.

(2.) Mr. G. Mohanty, learned advocate appears on behalf of respondents and submits, it would appear from both the award and impugned judgment that the principal sum itself constituted interest. Case of his client before the Tribunal and the Court below was, there cannot be interest on interest. That is against public policy.

(3.) Perused impugned judgment and the award. Following from the award is reproduced below.