JUDGMENT :

PANKAJ MITHAL, J.

1. Heard Smt. Jyoti Mendiratta, learned counsel for the petitioner and Smt. Aishwarya Bhati, learned A.S.G. for the Union of India.

2. In connection with a contract of 1984-85 between the petitioner and the respondent, an award came to be passed by the Arbitrator on 17.09.1997 under the Indian Arbitration Act, 1940.¹ [hereinafter referred to as ‘the Act’] It was made the rule of the court under Section 14 read with Section 17 of the Act and a decree was accordingly drawn.

3. The award vide its paragraph 12 provided for the interest on the amount awarded. The interest was awarded for two periods viz. (i) from the date of completion of the work up to the date of the award @ 12% per annum (simple interest) and (ii) @ 15% per annum from the date of the award till the date of its payment or the date of the court decree, whichever is earlier.

4. The portion of the award which is relevant for our purpose concerning interest is reproduced herein-below:

“12. Interest: The Union of India shall pay to M/s D. Khosla and Company simple interest @ 12% per annum on the amount awarded from the date of completion of work upto the date of award and 15% from the date of award t