A G ENTERPRISES Vs. PUNJAB STATE AND OTHERS

JUDGEMENT

(1.) Petitioner has filed this petition under Article 227 of Constitution of India challenging the orders dated 15.10.2007 (Annexure P-5) and 8.3.2013 (Annexure P-7) and award dated 5.4.1989 (Annexure P-2).

(2.) Learned counsel for the petitioner has submitted that the ex parte award had been passed by the Arbitrator. The Civil Court had erred in making the same a Rule of the Court. In fact, the respondents had failed to prepare the final bill. Petitioner was ready to pay the due amount to the respondents if they had prepared the final bill. Learned counsel has further submitted that the Arbitrator had not awarded any interest on the due principal amount. The Civil Judge had erred in granting interest at the rate of 9% per annum on the principal amount from the date of the award till its realization. Learned counsel has placed reliance on Section 29 of the Arbitration Act, 1940 ("Act" for short). Learned counsel for the petitioner has further submitted that the future interest could have been awarded at the rate of 6% per annum and not at the rate of 9% per annum.

(3.) Learned State counsel, on the other hand, has submitted that a perusal of the award Annexure P-2 reveals that the same had been passed after hearing both the parties. In fact, the petitioner had failed to submit any counter claim. Consequently, the claim put-forth by the State had been rightly allowed by the Arbitrator. The Civil Judge had rightly allowed interest on the principal amount.