MUNICIPAL COMMITTEE, PATIALA Vs. KRISHAN KUMAR BANSAL

JUDGEMENT

(1.) Vide order dated 23.1.1992, Sh. D.S. Sethi, S.E. National High Ways Circle, Jalandhar was appointed arbitrator between Krishan Kumar Bansal (contractor) and Municipal Committee, Patiala for determining the amount due to him from the latter in re : construction of roads in Anand Nagar Near Blue Wing School, Patiala allotted to him vide agreement dated 29.3.1985. He submitted claim to the SE PWD (B&R) Patiala on 29.10.1987 for adjudication. SE PWD Circle, Patiala informed both the parties of his un-willingness to act as arbitrator vide his letter No. 2910-11 dated 28.6.1991. It was, thereafter that vide order dated 23.1.1992 Shri D.S. Seth, SE National Highways Circle, Jalandhar was appointed as arbitrator by the Court. Shri D.S. Seth gave award dated 20.5.1992. In respect of claims No. 2 to 6 (a), (b), (c), he awarded Rs. 24, 549.00, 1, 31, 905.00, 17, 132.00, 9600.00, nil, nil and 2000.00 respectively. He awarded 18% compound interest yearly on Rs. 24, 549.00 w.e.f. 1.10.1986 to 20.5.1992. He awarded 18% compound interest yearly on Rs. 1, 58, 637/- w.e.f. 13.6.1986 to 20.5.1992. He also awarded 18% compound interest yearly on the total amount of the award from the date of the award to the date of actual payment to Krishan Kumar Bansal-contractor. Sh. Krishan Kumar Bansal made application under Sections 14, 17 and 18 of the Indian Arbitration Act, 1940 for filing of the award by Sh. D.S. Sethi-petitioner and for making it rule of the Court. JD-Municipal Committee, Patiala put in objections to the award under Sections 30 and 33 of the Arbitration Act Sub Judge Ist Class, Patiala vide order dated 6.5.1993 dismissed the objections and made the award rule of the Court. He did not tinker with the interest awarded by the arbitrator either with regard to the periods for which interest was awarded or the rate on which interest was awarded. Municipal Committee, Patiala went in appeal, Additional District Judge, Patiala vide order dated 8.11.1993 dismissed the appeal.