STATE OF RAJASTHAN Vs. R.R. CONSTRUCTIONS COMPANY

JUDGEMENT

(1.) Instant appeal has been preferred by the appellant under Sec. 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act of 1996') against the order dtd. 14/3/2016 passed by the Court of Additional District Judge No. 3, Jaipur Metropolitan, Jaipur (for short, 'the Court below') by which the objections filed by the appellant against the award dtd. 16/12/2003 have been rejected.

(2.) The facts, in brief, of the case are that the appellant issued a tender notice dtd. 23/1/1991 for the development of the Sikar Road in four lane from Military Canteen to Municipal Limit 237 KM to 247 KM. The tender offered by the respondent was accepted and thereafter the work order was issued in favour of the respondent and the agreement was also executed. The work was to be commenced with effect from 26/3/1991 and it was supposed to be completed till 25/3/1992. The respondent had completed the work of amount of Rs.34,51,573.00 when the amount was released the dispute arose between the parties and in terms of the agreement clause mentioned in the agreement the matter was referred to the Arbitrator for resolving the dispute between the parties. After considering the documents, facts and material available on the record the Learned Arbitrator passed an award in favour of the respondent directing the appellant to pay an amount of Rs.71,573.00 with interest @ 12% per annum with effect from 20/6/1995 till 15/12/2003 and thereafter, further direction was issued to pay interest @ 18 % per annum from the date of the award till the date of actual payment .

(3.) Feeling aggrieved and dis-satisfied by the impugned award dtd. 16/12/2003, the appellant submitted objections before the Court of Additional District Judge No.3, Jaipur Metropolitan Jaipur under Sec. 34 of the Act of 1996 and those objections were rejected by the Court below vide order dtd. 14/3/2016 by observing that the interest was awarded by the Tribunal looking to the commercial contract between the parties.