Union Of India (Uoi) And Ors. vs Krishan Kumar Madhok
2005 Latest Caselaw 1201 Del

JUDGMENT

Vijender Jain, J.

1. By way of this appeal, the appellant has challenged the order passed by the learned Single Judge dated 11.2.1997 by which the objections against the award filed by the appellant were dismissed. In the appeal before us the appellant has restricted his grievance with regard to grant of interest by the Court as well under the Award made on 20.9.2000.

2. Briefly stating the facts, certain disputes arose between the parties and the matter was referred for arbitration and an interim Award was made on 30.6.1988. The interim Award did not grant any interest and it was left to the appellant to calculate the amount due on said claims by the Arbitrator. That interim Award was challenged by the respondent by way of filing objections on 11.2.1997. On the objection of the respondent, the learned Single Judge of this Court vide its order dated 11.2.1997 held as under:

"In view of the foregoing reasons, I consider appropriate to remit the matter relating to the above claims of the Arbitrator for making the calculations on the basis of findings already arrived at by him. It will be open to the Arbitrator to consider the question of awarding interest on the amount, if any, awarded in favor of the petitioner under the above said claims. In so far as the rest of the Award is concerned, the same is made a Rule of the Court and a decree in terms thereof is hereby passed.

3. Pursuant to the directions of the learned Single Judge, the Arbitrator made the Award on 20.9.2000. In the said Award the Arbitrator under Claim No. 5 held as under:

"In the result, I make this Award awarding an amount of Rs. 16,83,751.61/- to the claimant against the respondent/UOI with interest @12% on the amount w.e.f.30.6.1988 till payment."

4. The appellant aggrieved by the aforesaid final Award made by the Arbitrator filed objections to the Award which were dismissed by the learned Single Judge vide Order dated 19.12.2001. In view of the fact that appellant had not made the payment in terms of the calculation on the material which was before the Arbitrator when the Arbitrator pronounced the interim Award and stated that only a sum of Rs. 16,83,751.61 was to be paid to the respondent, rejected the objections of the appellants holding as under:

"as the appellant did not care to make the payment of the amount, the amount that was found due to the respondent could not fetch any return upon it and further awarding of interest, by no stretch of imagination, would be arbitrary or illegal to prompt this Court to interfere with the Award".

5. We have heard the learned counsel for the parties at length. In the interim Award no amount was calculated by the Arbitrator. However, basis of the calculation or the claim was filed by the appellant. That part was not disputed by the appellant. Even when the award was remitted back subsequently only for calculating the figure by the arbitrator himself on the basis of material already on record filed by the appellant.

6. Therefore, fact remains that no quantified figure was available on which interest could be levied from 30.6.1988. We must add that the fault was entirely of the appellant as the appellant even after supplying the basis for calculation did not pay the amount to respondent but in view of the fact that the appellant has now accepted the Award and deposited a sum of Rs. 16,83,751.61 with the Registry of this Court pursuant to the Order dated 9.8.2002 and the same has also been withdrawn by the respondent in October, 2002, the respondent shall be entitled for interest @12% from 11.2.1997 when the Award was made Rule of the Court and a decree in terms thereof was passed leaving the calculation to be done by the Arbitrator which has been subsequently done by the Arbitrator in the year 2000. The appellant would pay interest on the sum of Rs. 16,83,751.61 from 11.2.1997 till the amount was deposited by the appellant in this Court i.e. 9.8.2002. The Order dated 11.2.1997, passed by the learned Single Judge is modified to that extent.

7. The appeal stands disposed of accordingly.

8. However, we make it clear that if the amount so calculated is not paid by the appellant within six weeks from the date of this order, the respondent shall be entitled to further interest @ 2% p.a. for such delay.