JUDGMENT - (1) This notice of motion raises a very interesting question -whether a Court has a power to grant interest on the principal sum adjudged by an award from the date of the award till payment and it arises in the following circumstances, By agreements dated 28th December 1956 and 27th June 1957 the construction work of the new Church gate station building in Fort, Bombay was entrusted by the President of India acting for the Western Railway Administration to M/s S. N. Srikantia Co. (Plaintiffs) on terms and conditions contained therein and as per the specifications, plans and drawing annexed thereto. Pursuant to the said contract the plaintiffs firm carried out the said work, completed the same and the certificate of completion was issued but in connection with the plaintiffs final bill disputes and differences arose between the parties and as provided for in the contract the same were referred to the joint arbitration of two arbitrators. However, since there was disagreement between the two arbitrators the matter was referred to umpire Shri A. C. Mukerji, who after hearing the parties and considering the evidence, made and published his award on 12th March 1965. By his award the Umpire adjudged that in addition to the amounts already paid to the plaintiffs the defendants (Union of India and the General Manager, Western Railway) were liable to pay a sum of Rs. 1,17,212.73 to the plaintiffs in full settlement of all their claims and outstandings. By their Attorneys notice dated 24th march 1965 the plaintiffs informed the defendants that they had accepted the award of the umpire and further called upon the defendant was to pay the said sum of Rs. 1,17,212.73 within 4 days from the receipt of the notice and the plaintiffs also gave notice that if the payment was not made within 4 days from the receipt thereof interest on the principal sum adjudged by the award at the rate of 9 per cent per annum till payment will be claimed. By his reply dated 1st April 1965 the 2nd defendant sated that the parties had agreed that the award should he filed in Court and that the plaintiffs should write to the umpire to expedite the filing of the award and as regards the claim for interest it was stated that the same was untenable. The award was thereafter filed in Court by the arbitrator and notices about the filing of the award were issued by this Court on 15th June 1965 and the same were served on both the parties on 26th June 1965. neither of the parties filed any petition for either setting aside to remitting the award within 30 days from the date of service of the notice. After obtaining the Prothonotarys certificate to that effect the plaintiffs have taken out the present notice of motion for a decree in terms of the award in their favour. While asking for a decree in terms of the award the plaintiffs have also prayed that the Court should award interest on the principal sum adjudged by the award viz. on Rupees 1,17,212.73 at the rate of 9 per cent per annum from the date of the award till the date of the decree and further interest on the said principal sum at the rate of 6 per cent per annum from the date of the decree till payment. The defendants have resisted the plaintiffs prayer for interest from the date of the award till the passing of the decree on the ground that under Section 29 of the Arbitration Act the Court has power to award interest at such rate as it deems reasonable on the principal sum adjudged by the award from the date of decree onwards and no interest from the date of the award could be granted.

(2) Mr. Nariman, appearing on behalf of the plaintiffs raised a three-fold contention. In the first place, he contended that S. 29 of the Arbitration Act, which dealth with the subject of interest on awards is merely an enabling provision, inasmuch as it confers power and discretion upon the Court to grant interest "from the date of the decree at such rate as the Court deems reasonable to be paid on the principal sum

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