Though matter is listed for admission, by consent of learned Advocates appearing for parties, it is taken up for final disposal.

2. Short point involved in this appeal is whether interim award passed by a Arbitral Tribunal would get merged with the final award or not? and, if it merges, the effect of such merger.

3. Facts in brief which has led to filing of this appeal by the Union of India can be crystallised as under:

Respondent herein filed a claim statement before Arbitral Tribunal in respect of an agreement dated 04.08.1999 and Arbitral Tribunal passed an interim award on 27.02.2001 directing refund of ‘vitiation amount’ with interest at 18% p.a. payable after 30 days from the date of publication of interim award in terms of Section 31(7)(b) of the Arbitration and Conciliation Act, 1996 (for short ‘1996, Act’). Thereafter final award came to be passed on 21.01.2005 awarding a total sum of Rs.8,83,085/with simple interest at 8% p.a. payable, if paid beyond 45 days.

4. Union of India (hereinafter referred to as ‘UOI’) being aggrieved by the interim award, preferred O.P.No.469/2002 under Section 34 of the 1996, Act before High Court of Madras and during the pendency of said O.P.No.469/2002, arbitration proceedings got concluded and final award came to be passed on 21.01.2005. Being aggrieved by the final award, UOI preferred O.P.No.315/2006 under Section 34 of the Act, 1996 before High Court of Madras and both petitions namely, O.P.Nos.469/2002 and 315/2006 were heard together and by order dated 08.06.2007, both petitions came to be dismissed. Being aggrieved by this order, UOI filed O.S.A.Nos.463 & 464/2009 before Division Bench, which also came to be dismissed by the High Court of Madras by order dated 30.04.2010. Said orders have become final and there is no dispute with regard to this fact. On dismissal of these two appeals, UOI made a payment of Rs.53,05,450/to the claimant which came to be acknowledged, received and ‘no claim certificate’ came to be issued by the claimant stating that there are no claims outstanding whatsoever on the matter referred to in the arbitration agreement.

5. UOI had made payment as referred to hereinabove in terms of the award and has calculated the interest @ 18% p.a. from 27.02.2001 (from date of interim award) till 21.01.2005 (date of final award) insofar as interim award is concerned and at the rate of 8% p.a. from 21.01.2005 (date of final award) to 16.10.2010 (date of payment) on the said interim award apart from satisfying the entire amount awarded under final award with interest as had been ordered.

6. Claimant not being satisfied with amounts received, filed Execution Petition No.1045/2013 claiming a sum of Rs.15,84,278/as per memo of calculation filed along with execution petition. Said amount claimed by the claimant related to interest portion only namely, claimant contended that it is entitled to receive interest @ 18% p.a. on the interim award from the date of interim award i.e., 27.02.2001 till payment i.e., 16.10.2010.

7. On service of notice, UOI – judgment debtor appeared and filed its statement of objections contending that they are not liable to pay amount as claimed in the execution petition and interest @ 18% p.a. which was awarded under the interim award dated 27.02.2001 had got merged with the final award dated 21.01.2005 and in the final award, interest that has been awarded is only 8% p.a., as such, UOI attempted to stave off of its liability to pay interest @ 18% p.a. on interim award after passing of the final award by filing a detailed statement of objections to the execution petition. After considering rival contentions raised by respective learned Advocates, Executing Court formulated following points for its adjudication:

“(1) Whether the decree holder proves that the Judgment Debtors are still liable to pay Rs.15,84,278.34ps. as shown in the Memo of calculations?

(2) What order?”

Executing Court held that interim award is an independent award and there is