UNION OF INDIA Vs. SURENDRA SINGH PARIHAR

JUDGEMENT

(1.) This appeal is directed against the order dated May 27, 1992, passed by the Additional District Judge No. 3, Jodhpur, by which the learned Additional District Judge disposed of the application under Sec. 30 of the Arbitration Act filed by Surendra Singh Parihar.

(2.) Plaintiff -applicant Surendra Singh was granted a contract for the provision of a miscellaneous building at Mount Abu. After the execution of the contract certain differences arose between the parties and the matter was referred for arbitration to the sole Arbitrator Mr. A.J. Kumaranthe Chief Surveyor of the Works. Both the parties presented their claims before the Arbitrator and the Arbitrator passed an award for a sum of Rs.1,14,923.92p. including the amount of interest @ 11% per annum and dismissed the remaining claim. This award was challenged by the applicant Surendra Singh on various grounds. The Union of India and the Chief Engineer, also, challenged the award before the learned Additional District Judge No. 3, Jodhpur. The learned Additional District Judge, by its order dated May 27, 1992, partly allowed the application under Sec. 30 of the Arbitration Act filed by Surendra Singh Parihar, maintained the amount awarded by the Arbitrator but increased the rate of interest from 11% per annum to 18% per annum, but so far as the objections raised by the defendant Union of India and the Chief Engineer are concerned, they were dismissed. Aggrieved of the order dated May 27, 1992, passed by the learned Additional District Judge No. 3, Jodhpur, rejecting the contentions of the defendant and awarding of the amount of Rs.91,216.26 along with interest @ 18% per annum, the appellants have filed this appeal. Though the award was challenged on various grounds, but the appeal was admitted only on the question of interest.

(3.) The short point, which requires consideration in the present case is whether the Arbitrator was competent to award the interest from the date of the Award and during the pendency of the proceedings before the Court and till the realization of the amount? The Arbitrator is competent to award interest for the period commencing from the date of the award to the date of the decree or till the date of realization whichever is earlier. The grant of interest for the post -award period is a matter of procedure and Sec. 34 of the C.P.C. authorises the Authority to Award interest pendente lite as well as for the post -decree period. Sec. 34 C.P.C. is applicable in the proceedings before the Arbitrator, also, though it may not apply in its strict senses. The Apex Court recently In the case of : Hindustan Construction Co. Ltd. v. The State of Jammu and Kashmir JT 1992 (5) S.C. 325 held that the Arbitrator Is. competent to award interest for the period commencing from the date of the Award to the date of the decree or till the date of realization and Sec. 34 C.P.C. is held applicable in such matter. The controversy in the present case, therefore, stands concluded by the judgment of the Hon'ble Supreme Court in the case of the Hindustan Construction Company Limited. The learned lower Court was, therefore, justified in awarding the interest.