Delhi Development Authority vs Ms. Chander Kant & Co. & Anr.
2009 Latest Caselaw 1561 Del

R-21
*    IN THE HIGH COURT OF DELHI AT NEW DELHI

                                                 Date of decision : April 21, 2009


+                          FAO(OS)341/2003


        Delhi Development Authority                           ..... Appellant
                           Through                     Ms. Sangeeta Chandra, Adv.
                    versus


        Ms. Chander Kant & Co. & Anr.                         ..... Respondent
                         Through                       Mr. R.Rajappan, Adv.

        CORAM:
        HON'BLE MR. JUSTICE MUKUL MUDGAL
        HON'BLE MR. JUSTICE VALMIKI J. MEHTA

     1. Whether the Reporters of local papers may be allowed to see
        the judgment?


     2. To be referred to the Reporter or not?


     3. Whether the judgment should be reported in the Digest?



 %                         JUDGMENT (ORAL)

MUKUL MUDGAL, J.

1. With consent of counsel for the parties the appeal is taken up for hearing.

2. This appeal challenges the judgment of the learned Single Judge dated 3 rd

March, 2003 making the award dated 20th March, 1995 a rule of the Court

FAO (OS) 341/2003 Page 1 except allowing the objection preferred by the appellant DDA qua Claim No.1

and 24.

3. The only contention which is pressed by the counsel for the appellant

DDA is that the arbitrator awarded interest on interest inasmuch as Claim No.28

towards interest which was awarded by the arbitrator for a sum of Rs.9,16,491/-

forms part of the total awarded amount of Rs.33,95,555/- and the arbitrator has

awarded thereafter interest on this total figure of Rs.33,95,555/- at 12% per

annum from the date of the award till the date of the decree or actual payment

whichever is earlier.

4. We find that the objection taken by the appellant on this issue with

respect to interest on interest is correct and is liable to be sustained as the award

Claim No.28 was only in respect of intent. We therefore modify the award to

the extent that the interest shall not be granted on Rs. 33,95,555/- but only after

reducing the amount of Rs.9,16,491/- from the amount of Rs.33,95,555/-. The

grant of interest as per the date indicated in the award is thus allowed on the

amount of Rs.24,79,064/-. We may however note that in the connected appeal

FAO (OS) No.349/2003 we have further modified the award by allowing Claim

No.1 without any interest in the facts and circumstances of the case to the

respondent herein and which claim though granted by the arbitrator had been set

aside by the learned Single Judge.

FAO (OS) 341/2003 Page 2

4. Accordingly, this appeal is disposed of by allowing the appeal to the

extent of reducing the principal amount of the Award which had erroneously

included the figure of interest in the principal amount.

                                              MUKUL MUDGAL, J



                                              VALMIKI J. MEHTA, J
APRIL 21, 2009
mm




FAO (OS) 341/2003                                                    Page 3