JUDGMENT :

1. This appeal under Section 39 of the Arbitration and Conciliation Act, 1940 (in short “the Act of 1940”) has been filed for setting aside the order and decree dated 2.3.2019 and 10.5.2019 respectively passed by District Judge, Rajnandgaon (CG) in MJC (Civil) No.137/2018 (Annexure A/1) to the extent of denial of pendente lite interest @ 18% p.a. from 1.9.1991 to 20.8.1997 and 18% p.a. interest for the post award period till the actual payment and for direction to the District Judge to pass a decree in accordance with the award.

2. Briefly stated, case of the appellant is that the appellant, a partnership firm registered under the Partnership Act, is engaged in contract works of all types and nature with the government or semi government departments, public sector undertakings or private companies etc. The appellant firm was awarded the contract for “construction of traction sub-station building with approach road at Rajnandgaon” for a total contract value of Rs.5.6 lacs and the parties entered into a contract on 10.3.1989, according to which the work was to be completed within six months from the date of award. However, due to major delays on the part of the respondent railways in providing the availability of work front and construction materials and also requesting the petitioner to undertake the additional work of laying pipes in control office, which did not form part of the initial contract, the work was delayed beyond the initial six months and the respondent railways arbitrarily terminated the contract on 7.9.1991 at the verge of completion of the work.

3. Aggrieved by such termination, the appellant made a request for appointment of arbitrator vide letter dated 23.9.1991 which was rejected by the respondent railways and thereafter, on application being filed by the appellant under Section 20 of the Act of 1940, in compliance of the order dated 25.1.2019 passed by the District Judge, Rajnandgaon, Shri B. Pandey was appointed as the sole arbitrator.

4. The learned Arbitrator passed an award on 31.7.2000 allowing the claim of the appellant and directed the respondent to pay a total sum of Rs.7,86,791/- inclusive of interest @ 18% p.a. pendente lite. It was further directed that the awarded sum shall be payable to the appellant by 31st August, 2000 or else interest @ 18% p.a. will be paid for the whole period from the date of cause i.e. 1.9.1991 till the date of payment. However, by mistake the appellant filed an application under Section 36 of the Arbitration and Conciliation Act, 1996 (in short “the Act of 1996”) for execution of award before the District Judge, Rajnandgaon as the Act of 1996 was in force at that time, which was rejected vide order dated 23.4.2003 on the ground that the award was passed under the Act of 1940, so execution application under the Act of 1996 would not be maintainable. Thereafter, the appellant filed an application under Section 17 read with Section 14 of the Act of 1940 with an application under Section 14 read with Section 5 of the Limitation Act which was registered as MJC No.06/2010. Learned District Judge condoned the delay and directed the respondent to file the award but the respondent expressed their inability to file the award on the ground of non-availability of the same in their office and therefore, the appellant filed certified copy of the award with an application on 18.3.2016.

5. The respondent railways in its reply to the application of the appellant raised objection that since the award was passed after the new Act of 1996 came into force, therefore, it shall be treated as an award passed under the Act of 1996 and as such, there would be no need for filing certified copy of the award before the District Judge. Thereafter, the learned District Judge passed an order on 9.3.2017 rejecting the application of the appellant holding that the application under Section 17 r/w section 14 for pronouncing the judgment in terms of award would not be maintainable as the award was