STATE OF J&K Vs. AB GAFFAR SURMA

JUDGEMENT

(1.) HAS the arbitrator the jurisdiction to award interest on the amount found due; if so, for what period can he allow it?

(2.) THIS is the controversy raised in this appeal. Answer to the first part of the poser is now a well settled principle that in the absence of the contract to the contrary, the arbitrator has the jurisdiction to award interest. It is the second part of the controversy which calls for determination. It stems from the dispute between the parties, hereto, that arose in respect of the contract of construction of super passage/ crossing -drainage on Neej Nallah, RD 6236 Lower Jehlum Hydle Electricity Project, Kashmir. The contract was allotted in the year 1970 to the respondent but the agreement thereabout came to be executed on 24 -7 -1971. Clause 19 of the agreement provided for adjudication by arbitration of disputes qua the execution of the contract. The clause nominated the Chief Engineer of the Project to be the arbitrator.

(3.) DISPUTE having arisen in respect of the contractor, an application seeking reference for arbitration diarisedas A.A. No. 48/97 lead to the passing of the order of reference u/s 20 of the Arbitration Act, by this court on 31 -5 -1976. The then Chief Engineer of the Project, namely Shri R.N. Bakshi, entered upon the reference and made the award on 19 -9 -1979. The award having been filed in the court lead to the filing of the objections thereto by the parties. On consideration of the matter this court set -aside the award vide the order dated: 17 -03 -1982, and referred the dispute to another arbitrator namely Peerzada Gh.Nabi, the retired Chief Engineer. The so nominated arbitrator did not enter upon the reference consequent upon which the court appointed vide the order dated: 12 -09 -1983, Shri Qazi Gh.Rasool, yet another retired Chief Engineer, as the arbitrator to adjudicate upon the dispute in reference.