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2012 Supreme(Bom) 1317

In the High Court of Bombay at Goa
F.M. REIS
M/s. J. L. Baptista, Civil Contractor
Versus
State of Goa, Rep. By Executive Engineer, Works Division XII (PHE), Public Works Department
WRIT PETITION NO. 371 OF 2002
Decided on : 20-07-2012

Advocates appeared:
For the Petitioner:C. Mascarenhas, Advocate.
For the Respondent:Ms. Priyanka Kamat, Addl. Government Advocate.

The central legal point established in the judgment is the importance of considering pending applications under relevant laws before deciding subsequent applications, and the need for such consideration in the interest of justice.

Headnote:

Interest - Arbitration Proceedings - Arbitration Act, 1940, Section 152, Section 29 - The court discussed the application filed under Section 152 of the Civil Procedure Code to award interest in terms of Section 29 of the Arbitration Act, 1940. The court highlighted the importance of considering the pending application under Section 17 of the Arbitration Act, 1940, which was not disposed of at the time of passing the impugned order.

Fact of the Case:

The Petitioner filed an application under Section 152 of the Civil Procedure Code to award interest in an Arbitration Proceedings. The application was rejected by the learned Civil Judge, Senior Division at Quepem. The Petitioner challenged this order in the Writ Petition.

Finding of the Court:

The court found that the learned Judge failed to consider the pending application under Section 17 of the Arbitration Act, 1940, which was not disposed of at the time of passing the impugned order. The court quashed and set aside the impugned order and directed the learned Judge to decide the applications afresh.

Issues: The issues revolved around the application filed under Section 152 of the Civil Procedure Code to award interest and the consideration of the pending application under Section 17 of the Arbitration Act, 1940.

Ratio Decidendi: The court's decision was influenced by the failure of the learned Judge to consider the pending application under Section 17 of the Arbitration Act, 1940, and the importance of such consideration for deciding the application under Section 152 of the Civil Procedure Code.

Final Decision: The impugned order was quashed and set aside, and the learned Judge was directed to decide the applications afresh in the light of the court's observations. All contentions of the parties on merits were left open.

Judgment :

Heard Shri Mascarenhas, learned Counsel appearing for the Petitioner and Ms. Kamat, learned Addl. Government Counsel appearing for the Respondent.

2. The above Petition challenges the Order passed by the learned Civil Judge, Senior Division at Quepem, dated 22.02.2000, whereby an application filed by the Petitioner under Section 152 of the Civil Procedure Code to award interest in terms of Section 29 of the Arbitration Act, 1940, came to be rejected.

3. Briefly, the facts of the case are that in an Arbitration Proceedings, an Award came to be passed by the Arbitrator which was submitted to the learned Civil Judge, Senior Division under Section 14 of the Arbitration Act, 1940. Thereafter, it appears that the Respondents raised same objections to the said Award. In the meanwhile, the Petitioner also filed an application dated 06.11.1992 under Section 17 of the Arbitration Act, 1940, inter alia, claiming that whilst making the Award the Rule of the Court, interest should be awarded from the date of the Decree upto actual payment. Thereafter, whilst disposing of the objections raised by the Respondents by Judgment dated 22.12.1993, the learned Judge rejected the objection but, however, in the same Order, directed that the Award of the sole Arbitrator be made the Rule of the Court. Immediately, thereafter, the Petitioner filed an application dated 02.07.1994, under Section 152 of the Civil Procedure Code to award interest at the rate of 18% per annum from the date of the Decree upto actual payment.

4. The Respondent challenged the said Judgment passed by the learned Judge rejecting their objections before this Court. This Court dismissed the Appeal preferred by the Respondent which was thereafter upheld by the Hon'ble Supreme Court. In the meanwhile, by the impugned Order dated 22.02.2000, the learned Civil Judge, Senior Division, Quepem, dismissed the application under Section 152 of the Civil Procedure Code filed by the Petitioner. The said Order came to be challenged in the above Writ Petition.

5. Shri Mascarenhas, learned Counsel appearing for the Petitioner, has pointed out that the learned Judge has failed to consider that an application was already filed by the Petitioner way back in the year 1992 even before the Award of the Arbitrator was made the Rule of the Court which was not disposed of whilst making the Award the Rule of the Court. Learned Counsel further pointed out that it is well settled that even assuming interest is refused, specific reasons as to why such interest has been refused should be given by the Court. Learned Counsel further pointed out that the Petition has been pending for quite sometime in view of the fact that the Judgment passed dismissing the objections raised by the Respondents were being challenged before the Hon'ble Supreme Court. Learned Counsel has thereafter taken me through the impugned Judgment and pointed out that the learned Judge has erroneously considered the said application on the basis of Section 34 of the Civil Procedure Code which is not applicable to the facts and circumstances of the case. Learned Counsel relied upon the Judgments of the Apex Courts reported in (2005) 3 Scale 402 in the case of State of Rajasthan vs. M/s. Nav Bharat Construction Co, and (2005) 12 SCC 273 in the case of C. V. Krishna vs. Govt. of T. N. Learned Counsel as such submits that the impugned Order deserves to be quashed and set aside.

6. On the other hand, Ms. Kamat, learned Addl. Government Advocate appearing for the Respondents, has pointed out that the application under Section 152 of the Civil Procedure Code is not maintainable in law. Learned Addl. Government Advocate further pointed out that merely not awarding interest does not by itself mean that there is any clerical error which gives rise to the Petitioner to file an application under Section 152 of the Civil Procedure Code. Learned Counsel further pointed out that there is no error and in fact the interest was refused by the learned










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