KATARIA BUILDERS Vs. STATE OF H.P.

JUDGEMENT

(1.) THE Question Raised in this Petition Whether a claimant decree holder is entitled to interest of 18% per annum under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996 when the Arbitrator allowed interest at the rate of 12% per annum upto the date of Award and kept silent so far interest from the date of Award till the date of payment is concerned ?

(2.) FACTS , Necessary, may be Noticed An Award was made in favour of the petitioner decree holder by the Arbitrator (Superintending Engineer, Arbitration, HP, PWD, Solan) in case No. SE ARB 244/96 on 26th October, 1999 in the following terms : "Award in favour of plaintiff M/s. Kataria Builders, 224 Saingarh Pathankot (Punjab) Claimant Sr No.

(3.) SUB section (7) of Section 31 of the Act provides for the interest on the payment of Arbitral Award for the payment of money. Sub section (7) of Section 31 is reproduced for convenience : "31(7)(a) Unless otherwise agreed by the parties, where and in so far as an Arbitral Award is for the payment of money, the Arbitral Tribunal may include in the sum for which the Award is made interest, at such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the Award is made.