SECRETARYWORKS DEPARTMENTGOVT OF ORISSA Vs. GHANASHYAM SAHU

JUDGEMENT

(1.) THIS appeal under Section 39 (1) (vi) of the Arbitration Act, 1940 (hereinafter referred to as the Act) is directed against the judgment dated 13-11-1981 passed by the learned Subordinate Judge, Bhubaneswar in O. Section No. 62 of 1981-1.

(2.) THE respondent is a contractor. Appellant No. 3 had entrusted him with the construction work of the road to connect the capital at Bhubaneswar with the University. Appellant No. 3 and the respondent entered into an agreement - vide Agreement No. 10-F-2 of 1973-74. Disputes arose between the parties and as appellant No. 2 failed to appoint an Arbitrator as per Clause 23 of the Agreement the respondent moved the Court for appointment of an Arbitrator under Section 8 (2) of the Act. THE learned Subordinate Judge appointed an Arbitrator in Misc. Case No. 210 of 1979. THE Arbitrator called for the statement of claims and counter-claims from the parties and finally made an award of Rupees 1,82,637.72 p. in favour of the respondent as against his claim for Rupees 3,41,735.00. This award of Rupees 1,82,637.72 p. includes the principal amount of Rs. 93,942.45 p., interest at 18 per cent per annum from the due date till the date of the claim and pendente lite interest at the same rate up to the date of the award. THE Arbitrator left it to the Court to award future interest. By his judgment dated 13-11-1981, the learned Subordinate Judge upheld the award and granted future interest to the respondent at 12 per cent per annum from the date of the decree till final payment.