MANAK CHAND Vs. GANESH DAS SAMIRMAL

JUDGEMENT

(1.) THIS is a revision application by the defendant against an appellate order of additional District Judge, Ajmer, holding that the arbitrator was competent to award interest on the principal amount found due in favour of the plaintiff for the period during which the arbitration proceedings remained pending before him and till the realisation of the amount.

(2.) THE defendant entered into forward transactions in maize with the plaintiff through the Tijarti Chamber Sarafa, Beawar, One of the terms of the contract between the parties was that the question or dispute which arises relating to taking or giving money in respect of the transactions will be referred to the arbitration of the Tijarti Chamber Sarafa, Beawar under its rules. The defendant having failed to pay the amount the plaintiff filed a claim before the Tijarti chamber Sarafa for being decided by arbitration. In this claim he asked for interest from the date the amount became due against the defendant to the date of realisation. This interest was awarded by the arbitrator. It was contended by the defendant before the learned Additional District Judge that the arbitrator had no power to award such interest. He relied on the decision of the Supreme Court in thawardas v. Union of India, AIR 1955 SC 468.

(3.) THE learned Additional District Judge however relied on some observations made by the Supreme Court in Ashok Construction Co. v. Union of India, 1970 wln 24 = 1970 UJ (SC) 367, which run as follows;-