Balco Engineers (Pvt.) Ltd. vs Delhi Transport Corporation Ltd.
1996 Latest Caselaw 650 Del

ORDER

A.K. Srivastava, J.

1. These are objections under Section 47 of the Code of Civil Procedure on behalf of the judgment debtor in the execution case No. 70 of 1995.

2. The facts of the case are that certain disputes arose between M/s. Balco Engineers Pvt. Ltd. and the Delhi Transport Corporation and the same were referred for sole arbitration of Shri Swami Dial, Chief Engineer (Retd.), Central Public Works Department. He gave award on 2.11.1993 for Rs. 3,20,451.25. Simple interest on the award amount was also allowed at the rate of 12% per annum from one month after the date of award till the date of the decree or the payment whichever was earlier. In the proceedings for making award a rule of the Court, Delhi Transport, Corporation filed objections vide I.A. 4974/94. Those objection were hereby by Usha Mehra, J. and the aforesaid award was made rule of the court with certain modifications, vide order dated 20.2.1995 the modification was to the effect that the Delhi Transport Corporation was entitled to adjust Rs. 40,467.40 under its claim No. 6 whereas in the award the adjustment of only Rs. 4,532.60 was given to the Delhi Transport Corporation. Resultantly, the award amount against the Delhi Transport Corporation got reduced to a sum of Rs. 2,84,516.45. However, the court did not modify that part of the award which had granted 12% interest to the claimant from one month after the date of the award till the date of decree or the payment whichever is earlier.

3. While making the award a rule of the Court Usha Mehra, J. ordered that the petitioner will also be entitled to interest on the awarded amount from the date of the decree till realisation. In that order the following was further said :

"It is, however, made clear that if the decretal amount is paid by the respondent within six weeks from the date of the decree then petitioner will not be entitled to interest from the date of the decree, otherwise petitioner will be entitled to interest at the rate of 12% p.a. from the date of the decree till realisation."

4. In these objections the judgment debtor, Delhi Transport Corporation, has taken a plea that in view of the fact that the award was modified by the court, interest on the awarded sum was not payable if the award amount was paid within six months from the date of the decree and since the awarded amount was tendered to the decree holder within that period, no interest was payable by the judgment debtor to the decree holder.

5. There is no dispute that a cheque for Rs. 2,84,516.45 was tendered by the judgment debtor to the decree holder in the evening of 3rd of April, 1995 i.e., the last date of six weeks from the date of the decree. It is admitted by the decree holder that the cheque was not accepted as it was for lesser amount. It is also admitted that the cheque was sent by the judgment debtor to the decree holder by a registered letter dated 4.4.1995. It is also an admission of the decree holder that he has received Rs. 2,84,516.45 on 4.4.1995.

6. In the execution application the decree holder is claiming a balance of Rs. 91,052.00 as interest payable by the judgment debtor to the decree holder. In these objections an alternative plea is made that in case the interest claimed by the decree holder is payable the same works out to Rs. 80,069.94 and not Rs. 91,052.00.

7. The decree holder did not file any reply to these objections and preferred only to argue in the matter.

8. Heard the learned counsel for the judgment debtor and the decree holder. A copy of the award and a copy of the order dated 20.2.1995 of Usha Mehra, J. by which the award was made rule of the court are on record. On perusal thereof the following appears to be established :

(i) The arbitrator made an award of Rs. 3,20,451.25 in favour of the claimant and against the judgment debtor. In addition to the aforesaid awarded amount the arbitrator also directed payment of simple interest at the rate of 12% per annum from one month after the date of award till the date of decree or payment whichever is earlier.

(ii) The Court which made the award a rule of the Court accepted the objections of the Delhi Transport Corporation partly and allowed adjustment to it to the tune of Rs. 40,467.40 against claim No. 6 instead of Rs. 4,532.60 accepted by the arbitrator.

(iii) Thus, the original award amount was reduced to Rs. 2,84,516.45 from Rs. 3,20,451.25.

(iv) The order dated 20.2.1995 did not modify award of simple interest at the rate of 12% on the awarded amount from one month after the date of the award till the date of the decree or payment whichever was earlier.

(v) The order dated 20.2.1995 by which the award was made rule of court, the court ordered that the claimant will also be entitled to interest on the awarded amount from the date of the decree till realisation. However, this interest was not to be paid in case the awarded amount was paid by the judgment debtor within six weeks from the date of the decree.

9. From the above the net result which appears to have emerged is that the judgment debtor was liable to pay Rs. 2,84,516.45 plus simple interest at a rate of 12% p.a. thereon from one month after the date of the award till the date of decree or the payment whichever was earlier. Further, as per the orders of the High Court dated 20.2.1995 the judgment debtor was also to pay interest at the rate of 12% per annum from the date of the decree till realisation of the decretal amount if the entire decretal amount is not paid within six weeks from the date of the decree.

10. The judgment debtor no doubt paid Rs. 2,84,516.54 to the decree holder within six weeks from the date of the decree but it did not cover the entire awarded amount because it did not include the amount of interest which was liable to be paid on the award amount.

11. Award of interest is for two distinct periods and they cannot be mixed up or confused. One period is from one month after the date of the award till the date of the decree or payment whichever was earlier and the other period is from the date of decree till the realisation of the amount. The arbitrator dealt with the period from one month after the date of the award till the date of the decree and the High Court under its order dated 20.2.1995 dealt with the period from the date of the decree till realisation of the amount. The High Court while making the award a rule of the court did not modify that part of the award which granted interest to the claimant of the period up to the date of the decree. Therefore, if the judgment debtor made any tender within six weeks from the date of the decree it cannot be said that he was not liable to pay interest for the period prior to the date of the decree. Tender of any money within the aforesaid period of six weeks could only absolve the judgment debtor from payment of interest only for the period after the decree.

12. In view of the above, the objection of the judgment debtor that he was not liable to pay interest for the period from one month after the date of the award till the date of decree cannot be accepted and is hereby rejected.

13. So far as the calculation of the amount of interest is concerned and whether the amount of interest payable by the judgment debtor to the decree holder would be Rs. 91,052.00 or Rs. 80,069.94 the matter is only of calculation on the basis of above observations. The main issue between the parties has been settled and the judgment debtor has to pay the interest accordingly after calculation.

14. The execution application is disposed of accordingly.

15. Order accordingly.