CHAUDHARY CONSTRUCTION COMPANY Vs. THE STATE OF RAJASTHAN

JUDGEMENT

(1.) HEARD learned Counsels.

(2.) THIS revision petition is directed against the order dt. 01.06.2002 passed by the learned District Judge, Udaipur who while allowing the application under Section 17 of the Arbitration Act, 1940 made the arbitration award dt. 26.03.1999 a rule of Court, however, reduced the rate of interest from 18% per annum as awarded by the Arbitrator to 9% per annum pendente lite from 25.03.1996 to the date of payment in the impugned order.

(3.) AS against this, Mr. Mukul Singhvi, learned Counsel appearing for the respondents relying upon the decision of the Hon'ble Supreme Court in case of Krishna Bhagya Jala Nigam Ltd. v. G. Harischandra Reddy and Anr. : AIR 2007 SC 817 referring to para 11 of the said judgment submitted that the Hon'ble Supreme Court in that case had reduced the rate of interest from 18% to 9% at all the three stages of the arbitration namely pre -arbitration, pendent lite and post -award period. He, therefore, submitted that since the Bank rates have been constantly falling and the present Banks also paid interest at the rate of 9% per annum, the impugned order of learned District Judge does not require to be interfered with in the revisional jurisdiction of this Court.