PRASANNA KUMAR ROUTRAY Vs. STATE OF ORISSA

JUDGEMENT

(1.) The claimant has filed this appeal under Section 39 of the Arbitration Act, 1940 (hereinafter referred to as the "Act").

(2.) The appellant had executed the work of Excavation from R/D 49.265 KM to 50.525 KM to Tamasa Main Canal (TMC in the district of Malkanagiri. as per Agreement No. 38-F2 of 1980-81. Though the work was completed in June, 1985, the final bill was prepared in the year 1987. Since there was some dispute relating to the amount payable, the appellant had filed several representations before the respondent and ultimately had to file claim application before the Arbitration Tribunal constituted under Section 41-A of the Act, as amended in Orissa, on 11.3.1993 claiming a sum of Rs. 85,153.12 paise along with twelve per cent interest from the due date till the date of payment. The State in its objection resisted the claim filed before the Arbitration Tribunal and on the other hand claimed that certain recoveries are to be made from the Contractor.

(3.) The Arbitration Tribunal after hearing the parties held that the Contractor was entitled to a total sum of Rs. 70.933/-. It further held that the Contractor is entitled to interest on the awarded amount from the date of the claim application till payment. However, the Tribunal negatived the prayer of the Contractor for payment of interest for the period from the date of completion of the work till the date of filing of the claim application, that is to say, interest for the pre-reference period.