PUNJAB STATE Vs. SADHU SINGH AND COMPANY

JUDGEMENT

(1.) The State of Punjab is in revision aggrieved against the order passed by the learned first Appellate Court on 14.6.1996, whereby the Award dated 11.5.1990 announced by an Arbitrator was ordered to be made as Rule of the Court. All the above mentioned petitions give rise to common questions of law and facts, therefore, all these cases are taken up for hearing together.

(2.) The dispute between the parties was referred to the Superintending Engineer, Anandpur Sahib Hospital Project as an Arbitrator. The Arbitrator announced his Award on 11.5.1990. The State filed objections to the said Award sought to be made Rule of the Court. The objection was that the work was completed on 12.8.1984 and the payment was made on 11.5.1987, therefore, award of interest from January, 1985 to May, 1987 to the tune of Rs. 43,670/- is illgal, wrong and not permitted under Clause 19 of the conditions of agreement. The learned trial Court accepted the objections and set aside the Award holding that the Award by the Arbitrator is illegal, but the first Appellate Court while relying upon the judgment of the Hon'ble Supreme Court in Secretary, Irrigation Department, Government of Orissa v. G.C. Roy, 1992 1 SCC 508, partly allowed the appeal and held that there is no term in the agreement prohibiting grant of interest.

(3.) Clause 19 of the agreement, reads as under: