UNION OF INDIA Vs. DHARAMPAL SHARMA

JUDGEMENT

(1.) In the present appeal, instituted under Section 37 of the Arbitration and Conciliation Act, 1996 (for short - the Act), challenge is made to the order dated 03.11.2014 passed by the District Judge, Pathankot upon an application filed by the appellant under Section 34 of the Act.

(2.) The facts, in brief, which are required to be noticed for adjudicating upon the present appeal are that through an agreement dated 09.03.1994 the appellant awarded to the respondent the work of repair of A, B and C class level crossing in the section of IOW/Northern Railway, Pathankot. As per the agreement disputes between the parties were to be resolved through the mode of arbitration. Disputes arose between the parties and they were referred to a sole Arbitrator. Through his Award dated 18.08.2012 the Arbitrator held respondent No.1 entitled to receive from the appellant an amount of Rs.4,22,693/-. It was further directed that the earnest money be released to respondent No.1 and that if the awarded amount was not paid by the appellant within 90 days from the date of receipt of the Award the same would be paid alongwith simple interest @ 9% per annum for the delay beyond the said period of 90 days.

(3.) The respondent filed an application under Section 34 of the Act seeking setting aside of the aforesaid Award only to the extent that through the same the Arbitrator had not awarded to respondent No.1 any interest from the date the awarded amount had become due as also for the period when the dispute was pending before the Arbitrator. The District Judge, Pathankot, through his order dated 03.11.2014, upheld the non-grant of interest for the pre-reference period but set aside the Award with regard to non-grant of interest for the period the reference was pending before the Arbitrator and remanded the matter to the Arbitrator for a fresh decision on that issue. The afore-referred direction passed by the District Judge, Pathankot is the subject matter of challenge in the present appeal.