EXECUTIVE ENGINEER Vs. AZAD SINGH

JUDGEMENT

(1.) The judgment dated 27.02.2010 passed by the Additional District Judge, Sonepat, dismissing the petition filed by the petitioner-appellant (hereinafter referred as 'the appellant') under Section 34 of the Arbitration and Conciliation Act, 1996 for setting aside the Award dated 20.09.2006 (later on corrected on 14.11.2006) passed by respondent No. 2, is under challenge. The main dispute raised in the case is, "whether the respondents are entitled to interest on the awarded amount'". The Arbitrator had awarded interest on delayed payment and not on the items of contract as per agreement between the parties. The counsel for the Board has urged that as per clause 25-A of the agreement, the respondent was not entitled to any interest.

(2.) Heard, admittedly, there is Clause No. 25-A in the agreement with regard to the fact that the Arbitrator would not award any interest to the parties on any of the items of the agreement. The relevant extract from Clause 25-A of the agreement is reproduced as under:-

(3.) Now while passing the Award dated 20.09.2006, which was later on corrected on 14.11.2006, the Arbitrator has not awarded interest on the items of the contract, but on the delayed payment. The relevant observations made by the Arbitrator are as under:-