UNION OF INDIA Vs. ANANDI LAL LALPURIA

JUDGEMENT

(1.) Appellants have preferred separate Miscellaneous Appeals aggrieved by order dated 5.12.2018 passed by Commercial Court No. 1, Jaipur whereby objections filed by the objector-Union of India was partly allowed.

(2.) Objectors have preferred the Miscellaneous appeal seeking quashing of the entire arbitral award dated 22.6.2017 whereby claimant has preferred appeal claiming interest awarded by the arbitrator.

(3.) It is contended by the Counsel for Union of India that the arbitrator has erred in passing the award as a whole as it was contrary to the General Conditions of Contract (hereinafter to be referred to as 'GCC'?) which has a statutory backing as envisaged under Article 311 of the Constitution of India. It is contended that as per clause 16 (3) of GCC, no interest is payable on the Earnest Money and Security Deposit or amounts payable to the Contractor under the Contract. It is also contended that as per clause 64 (5) of the GCC 'where the arbitral award is for the payment of money, no interest shall be payable on whole or any part of the money for any period till the date on which the award is made'?.