EXECUTIVE ENGINEER Vs. RAM NIWAS BANSAL

JUDGEMENT

(1.) This is a civil revision and has been directed against the judgment dated 8.1.1998 passed by the Addl. Distt. Judge, Kaithal, who dismissed the appeal of the petitioner, but modified the award dated 5.4.1996 and the impugned decree to the extent that the contractor will not be entitled to any interest for pre-reference period. The Addl. Distt. Judge, Kaithal, vide its judgment held that the contractor shall be entitled to a sum of Rs. 7,72,169/- with pendente lite interest @ 15% p.a. and future interest @18% from the date of the award till its payment.

(2.) The first submission of the counsel for the petitioner is that as per the agreement, it was agreed upon between the parties that in the event of a dispute, when the matter will be referred to the Arbitrator, the Arbitrator shall not award any interest on the awarded amount and in view of this stipulation, the Arbitrator has exceeded his jurisdiction.

(3.) I find substance in this argument. As per clause 25A of the agreement, it is clear that the Arbitrator shall not award any interest to the parties on any of the items of the contract agreement. For the sake of convenience, clause 25A can be reproduced as follows :-