STATE OF ORISSA Vs. R N MISRA

JUDGEMENT

(1.) THIS appeal has been filed by the State of Orissa represented by the Executive Engineer, Ramiala Canal Division, Kamakhyanagar, District-Dhenkanal against the judgment dated 16-2-1982 passed by the learned Subordinate Judge, Bhubaneswar in O. S. No. 293 of 1981-I malting the award of the learned Arbitrator a rule of the Court subject to the modification that future interest is to be limited only to the principal claim of the respondent.

(2.) THE respondent was entrusted with certain works under the Ramiala Irrigation Project by the Executive Engineer, Ramiala Canal Division under agreement No. 4 F-2 of 1978-79. As disputes arose between the parties, the Additional Director of Designs, Bhubaneswar was appointed as the Arbitrator to decide the disputes. By his order dt. 20-11-1981 the learned Arbitrator gave an award for a sum of Rs. 2,54,048.50 paise to be paid by the appellant to the respondent besides refund of the security deposit and earnest money. THE learned Arbitrator also allowed interest at the rate of 10% on the whole amount of the award mentioned above. THEreafter the appellant filed objections against the award and the same were registered as O. S. No 293 of 1981-I in the court of the learned Subordinate Judge, Bhubaneswar. On consideration of the respective cases of the parties and after hearing them, the learned Subordinate Judge upheld the award on the ground that it was not supported by reasons and that no error apparent an the face of the award had been brought to the notice of the court to justify setting it aside. THE learned Subordinate Judge however modified the award to the extent that future interest at the rate of 10% per annum shall be paid only on the principal sum of Rs. 2,23,067/- and not on the whole amount of the award.