STATE OF ORISSA Vs. R.S. DAS

JUDGEMENT

(1.) THE appeal has been filed against the order dated 20 -12 -1976 passed by the Subordinate Judge, Bhubaneswar in Misc. Case No. 136/76 (Arb.). A cross -objection has also been filed by the Respondent.

(2.) CERTAIN matters between the Appellant and the Respondent had been referred to an Arbitrator and after his award was received by the Court below objections against the same were filed both by the Appellant and the Respondent in that Court. When that matter was taken up for hearing in the Court below the Appellant confined its objections only to item Nos. 1 and 2 of the award mainly on the ground that the amounts awarded by the Arbitrator in respect of the said items of claim were outside the scope of the terms and conditions of the contract between the patties in respect of these items, and hence the Arbitrator could not have awarded the amounts as done by him in respect of the said items. The objection which was filed by the Respondent was against the refusal of the Arbitrator to grant interest on the amount awarded for the period from the alleged due date of payment upto the date of the passing of the a ward by the Arbitrator. The Court below dismissed both the objections.

(3.) THE Respondent in his cross -objection prays that he should be granted interest on the amounts awarded by the Arbitrator for the period between the due date of payment of his dues as mentioned in the agreement and the passing of the award by the Arbitrator. In this case the Arbitrator has directed payment of interest at the rate of 6 percent per annum on the amount awarded, to be calculated from the date of expiry of 30 days after the passing of the award, if the amount awarded is not paid within the said period of 30 days. The Arbitrator in his award has specifically disallowed interest, compensation or damages on any other account. As the written contract is not a part of the award it is not possible to ascertain the 'due date' from the award itself. Apart from the above considerations there is no provision in the Arbitration Act enabling the Court to grant interest for the period claimed by the Respondent. The parties on agreement referred the Respondent's money claim on the Appellant to the Arbitrator. The Arbitrator by his award has finally settled the said claim by direction payment of a certain amount to the Respondent with interest as specifically mentioned in the award. The Arbitrator was appointed the sole and final judge to settle the dispute between the parties regarding the Respondent's claim, and so they bound themselves to accept the award as final and conclusive in respect of all matters referred to him. The question of payment of interest is certainly a matter incidental to the final settlement of such claim. The very fact that the Arbitrator has specifically disallowed payment of interest for the aforesaid period clearly indicates that the Arbitrator considered that matter and then passed that order. As reasons for disallowing the same have not been mentioned it is not for this Court to probe into that matter. this Court cannot also add to or subtract anything from that award. Accordingly, the Respondent's claim for interest for the aforesaid period was rightly refused by the Court below. The cross appeal filed only for the said claim is accordingly dismissed.