ARAVIND CONSTRCTIONS Vs. UNION OF INDIA

JUDGEMENT

(1.) This Civil Revision Petition is filed challenging the order dated 01.06.2017 in E.A.No.428 of 2017, and also earlier order dated 02.04.2012 in E.P.No.25 of 2003 on the file of the Court of the Chief Judge, City Civil Court at Hyderabad (for short, the trial Court).

(2.) The petitioner is a private limited company carrying on various construction works for the Union of India, the respondents herein. The petitioner entered into an agreement on 10.04.1986 with the respondents for execution of the works of providing of Wall Claddings, Annexures and Flooring of Building No.2 at Yeddumylaram, near Shankerpally. During the execution of works, differences had arisen between the petitioner and the respondents. Therefore, Sri Justice K.Ramaswamy, retired Judge of Supreme Court, was appointed as the Arbitrator for adjudicating the disputes. On 29.04.2001, the said Arbitrator passed an Award. Its operative portion is as follows:

(3.) In pursuance of the said order, the petitioner filed O.P.No.3 of 2001 before this Court under Sections 14 and 17 of the Indian Arbitration Act for making the award passed by the learned Arbitrator dated 29.04.2001 as Rule of the Court by passing a decree in terms of the award with interest @ 24% per annum from the date of the decree till the date of realization with costs. This Court, by order dated 27.12.2002, allowed the OP by decreeing the award of the Arbitrator dated 29.04.2001 with interest @ 12% per annum from the date of the decree till the date of payment. In pursuance of the said order, the petitioner filed E.P.No.25 of 2003 before the trial Court for attachment of the moveables of respondent Nos.2 and 3 for realization of the amount awarded along with interest. In the EP, the petitioner filed a calculation memo dated 12.08.2011 seeking to grant interest after adding the interest to the principal amount. Hence, a question arose before the trial Court, 'whether the interest should be added to the principal from time to time and at different rests and further interest should be calculated after adding the interest to the principal, or on the principal sum alone without adding the interest amount to the principal amount'. The trial Court came to the conclusion that the compound interest cannot be granted. Accordingly, by its order dated 02.04.2012, the trial Court held that the petitioner is entitled to interest on the principal amount only, but not on the principal amount plus interest at different rests/intervals.