INDIANA ENGINEERING WORKS Vs. ENGINEERING PROJECTS (INDIA)

JUDGEMENT

(1.) ALL these connected matters were heard together and are being disposed of by this common order.

(2.) THE relevant facts in short are as follows. Engineering Projects (India) Ltd., hereinafter referred as - the Judgment Debtor (J. Dr.), placed purchase order dated 5.12.1991 to Indiana Engineering Works (Bombay) (P) Ltd., hereinafter referred as -the Decree Holder (D. Hr.), for supply of shuttle conveyors, which order was completed by November, 1993. On the ground that the J. Dr. failed to make payment of the due principal sum and interest to the tune of Rs. 31,53,662/ - calculated up to 30.6.1995, the D. Hr. filed company petition being C.P. No. 7 of 1995(R) before the Ranchi Bench of Patna High Court. By order dated 10.3.1997, the Company Court directed for winding up of the J. Dr. Against that order the J. Dr. filed intra court appeal being L.P.A. No. 173 of 1997(R) (L.P.A. for short). By order dated 23.4.2001, the L.P.A. was disposed of. The order of winding up was set aside and an agreed order was passed appointing Mr. Loknath Prasad, retired Judge, of Patna High Court as one man arbitral tribunal to adjudicate the disputes between the parties. The arbitration proceedings were held at Ranchi and the Award was passed on 24.3.2006. As per the award, the D. Hr. was found entitled to get Rs. 11,98,855.00 along with interest thereon @ 12% per annum from 1.5.1994 till the date of signing of the award, within two months from the award, failing which, interest @ 18% per annum was also to be paid on such awarded amount, from the date of the award, till the date of payment. However, the claim of the D.Hr. to grant interest as per the provisions of "Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993" (for short 1993 Act) was refused. D. Hr. filed the application in question under Section 34 of the Act on 23.7.2003 before the learned Sub Judge -I, Ranchi for setting aside that portion of the Award refusing to grant interest under 1993 Act, and claiming grant of interest as per 1993 Act.

(3.) DURING the course of hearing on 18.7.2008, Mr. Shivnath appearing for the J. Dr. submitted that the J. Dr. offered the awarded amount, but the D. Hr. refused to accept. On this Mr. Poddar, appearing for the D.Hr., submitted that even though, the award has become final, the J. Dr. did not offer the amount as per the award and therefore the D. Hr. was justified in not accepting the same. However, Mr. Poddar submitted that if the amount is paid as per the award, he may advise his client not to pursue the claim of interest as per 1993 Act. Accordingly, the J. Dr. was directed to pay the awarded amount including the interest, as per the award, calculated up to June 2008, to the D. Hr. and the D. Hr. was directed to accept the same, without prejudice to their contentions. But on 19.9.2008, the J. Dr. handed over a draft dt. 8.8.2008 to the D. Hr. for Rs. 25,89,035/ - only, which was not as per the award. However, the D.Hr., was asked to encash it, without prejudice to all it's contentions.