UNION OF INDIA Vs. KRISHNA CONSTRUCTION COMPANY

JUDGEMENT

(1.) The order dated 22.02.2002 is impugned by the judgment debtor in the present revision petition whereby the petitioner was directed to pay interest @ 10% per annum on the entire awarded amount.

(2.) The dispute between the parties was referred to the sole arbitrator. The sole arbitrator has passed an award on 03.05.1993. The award in respect of interest reads as under:

(3.) From the extract of the award reproduced above, it transpires that the arbitrator has given interest @ 10% per annum for the pre-reference and pendente lite period. However, the future interest was to be 10% per annum on the "amount awarded". The award does not specifically state that on which amount, the future interest is payable. The award of interest @ 10% from 18.02.1982 to the date of award is separate and specific as a pendente lite interest. The future interest is payable only on the amount awarded other than such interest amount as the future interest is payable on the principal sum adjudged. Therefore, the present revision petition is disposed of with a clarification that the future interest is payable on the principal sum adjudged, i.e. by excluding interest awarded for a pre-reference and pendente lite period. The revision petition is disposed of accordingly. Revision petition disposed of.