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2001 Supreme(SC) 762
2001(6) Supreme 305
SUPREME COURT OF INDIA
G.B. Pattanaik & B.N. Agrawal, JJ.
National Aluminium Co. Ltd. -Appellant
versus
M/s. Varun Shipping Co. Ltd. -Respondent
Civil Appeal No. 3357 of 2001
(Arising out of SLP (C) No. 15490/2000)
With
Civil Appeal Nos. 3358 and 3359 of 2001
(Arising out of SLP (C) Nos. 15542 and 15568 of 2000)
Decided on 25-4-2001
Headnote:Arbitration Act, 1940-Section 14-Unreasoned awards made Rule of Court after objections were overruled by High Court-Appeal-Award of compensation for demurrage charges challenged in view of terms of agreement and award of interest at 15% alleged was excessive-1st contention found not tenable even when examined in terms of agreement-Interest at 15% was excessive & reduced to 9%-Reduction of interest effective qua rate of interest awarded by Arbitrator and not to alter rate of interest awarded in decree. (Para 3)
ORDER
Leave granted.
2. These appeals are directed against the orders of a Division Bench of the Bombay High Court affirming the judgment of the learned Single Judge. Awards having been passed by the Arbitrator under the Arbitration Act, 1940 which awards were unreasoned awards, objections were filed by the appellants. The learned Single Judge of the Bombay High Court over-ruled those objections and made the awards a Rule of the Court. The appellants approached the Division Bench in appeal and the appeals having been dismissed, the present appeals are before this Court.
3. The learned Additional Solicitor General appearing for the appellants raises two contentions in assailing the validity of the awards in question. One, the Arbitrator had no jurisdiction to award compensation for demurrage charges in view of the terms of the agreement itself and two, in any view of the matter, the award of interest of 15 per cent is grossly excessive and the same cannot be sustained. So far as the first contention is concerned, having examined the awards of the Arbitrator and the contentions raised by the learned A.S.G. in assailing the legality of the same and which contention stood rejected, as well as the judgment of the Division Bench of the High Court, we are unable to persuade ourselves to agree with the submissions made and examine the correctness of the contention with reference to the provisions of the agreement itself which did not form a part of the award. But so far as the second contention is concerned, on the face of it, the award of interest at 15 per cent appears to be excessive. We, therefore, reduce the same to 9 per cent. The reduction of interest is qua the rate of interest awarded by the Arbitrator and does not alter the rate of interest awarded in the decree itself. The award amount in question should be paid within eight weeks from today.
Subject to the aforesaid reduction on the question of interest, the awards stand confirmed and the appeals stand disposed of.
Appeal disposed of accordingly.
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Parallel Citations of other Journals :
National Aluminium Co. Ltd. v. Varun Shipping Co. Lt.d. , 2001(6) Supreme 305 : 2001 (4) CCC 11
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