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1997 Supreme(SC) 153

S. P. BHARUCHA, A. M. AHMADI, B. N. KIRPAL
State Of Orissa – Appellant
Versus
B. N. Agarwal – Respondent


JUDGMENT

Kirpal, J.-The main question which arises for consideration in these cases relates to the power of the Arbitrator to award interest.

2. The contention on behalf of the appellants against whom interest has been awarded by the arbitrators, is that this Court held in Executive Engineer (Irrigation) v. Abhaduta Jena1, that the arbitrator has no power to award interest in respect of pre reference period in the absence of the claimant having a right under the contract or a provision of substantive law, to get interest. On the other hand, it is the submission on behalf of the claimants/respondents that the aforesaid decision in the case of Abhaduta Jena (supra) has been overruled by a Constitution Bench of this Court in the case of Secretary, Irrigation Department, Government of Orissa and Others v. G.C. Roy2, and it has been held that the arbitrator could award pre reference, pendente lite and future interest.

3. Before dealing with the facts of each case it will be appropriate to examine the relevant decisions of this Court in order to determine the correct legal position with regard to the jurisdiction of the arbitrator to award interest in respect of the periods for which intere
































































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