JUDGMENT

SABYASACHI MUKHARJI, J. :—Special leave granted.

2. This is an appeal from the judgment and order dated October 12, 1987 of the Division Bench of the High Court of Bombay. The appellant had chartered their vessel KRISTEL to respondent for carrying oil from Arabian Gulf to India under a charter party, dated 30th November, 1979. Clause 40(a) of the charter party provided that the charter shall be construed and the relations between the parties shall be determined in accordance with the English law, Clause 40(b) of the charter party provided that any dispute arising under the charter party shall be decided by the English Courts but that either party may elect, in writing, to have the dispute referred to the arbitration of a single arbitrator in London in accordance with the (English) Arbitration Act, 1950.

3. Disputes and differences arose between the parties, and they appointed one Mr. Robert William Reed of the Baltic Exchange and of 28, Reddons Road, Beckenham, Rent BR 3 ILZ to be the sole arbitrator. The parties appeared before the arbitrator represented by their respective Solicitors and counsel. The arbitrator made his award on 28th July, 1982 which contained, inter alia, as follows :

"I Award and Adjudge that the Charterers do forthwith pay the Owners the sum of U.S. $ 291, 822.90 (United States Dollars two hundred and ninetyone thousand eight hundred and twenty-two only) together with interest at the rate of 15 per cent per annum as from 20th June, 1980, to the date of this my Final Award in full and final settlement of the matters at issue in the Reference.

I Further award and Adjudge that the Charterers do bear and pay their own and the owners costs of the Reference (the latter to be taxed in the event of disagreement) and that the Charterers do bear and pay the cost of this my Final Award which I hereby tax and settle at E4, 684 including my disbursements. Provided always that if in the first instance the Owners shall have paid the said cost of this my Award, then they shall be entitled to an immediate refund from the Charterers of the sum so paid."

4. As mentioned hereinbefore, the arbitrator awarded the cost of reference to be taxed in the event of disagreement. The respondent paid only the principal sum and failed and neglected to pay any interest on it and the appellants cost of reference to arbitration and the cost of the award. Pursuant to S. 20 of the English Arbitration Act, 1950 a sum directed to be paid by the award shall carry interest as from the date of the award at the same rate as the judgment date. It appears that from 8th June, 1982 the interest rate on judgment debt in England was 147/8 per annum.

5. The award is enforceable under the Foreign Awards (Recognition and Enforcement) Act, 1961 (hereinafter called the Act). The appellant filed an application under the Act in the High Court of Bombay, inter alia, contending for the judgment be pronounced and a decree to be passed according to the award in favour of the appellant. The learned single Judge of the High Court by his judgment and order dated 21st February, 1983 decreed in favour of the appellant and directed the respondent to pay interest and costs of the award so awarded by the arbitrator and also cost of the petition. The learned Judge, however, rejected the appellants prayer for the cost of reference to arbitration, and also rejected the applicants prayer that in the alternative liberty should be reserved in respect of the said prayer. The said prayer was made orally but was refused by the learned single Judge because he observed that he saw no reason to reserve such liberty, as the appellant had not taken any steps.

6. Aggrieved by the said judgment and order dated 21 st February, 1983 the appellant preferred an appeal before the Division Bench of the High Court. During the pendency of the said appeal in the High Court the appellants costs of reference to arbitration as awarded by the arbitrator were taxed because of the failure of the par