MANMOHAN, J : (Oral)

1. Present application has been filed by the judgment debtor claiming refund of alleged excess payment of Rs. 60,01,823.18 along with interest at the rate of 16% p.a. w.e.f. 4th October, 2006 till the date the amount is refunded to judgment debtor-DDA.

2. At the outset, learned counsel for judgment debtor-DDA fairly stated that in view of non-encashment of DDA’s cheque No. 090317 dated 27th September, 2006 for Rs. 43,20,531.00/-, he is not claiming refund of the said amount.

3. Consequently, the only issue that arises for consideration before this Court in the present proceedings is as to how much interest is payable to the decree holder.

4. In the Award, learned Arbitrator has awarded interest in the following manner :-

“11.3. A W A R D : It is seen that the work has been completed by the Claimants on 4.8.90. Assuming a reasonable period of 3 months for preparation of the Final Bill and another 6 months for passing of the same, the interest is due from 1.9.1991. The Claimant has demanded interest from 22.12.91 (Exhibit C-82) @ 24% per annum. A rate of 15% simple interest per annum is considered reasonable in the case of abnormal delay in the payment of the Final Bill. (i). For the pre-suit period :- According to the Interest Act, 1978, interest is payable for the pre-suit period i.e. 22.12.91 to 10.5.93 (16.5 months) simple interest @ 15% per annum on an amount of Rs.25,64,362/- will be payable i.e. Rs.5,28,900/-. (ii). For the pendentalite period :- According to the latest judgment of the Supreme Court, i.e. from 11.5.93 upto 30.9.95 (28.5 months) simple interest @ 15% per annum on an amount of Rs.25,64,362/- will be payable i.e. Rs.9,13,554/. (iii). For future interest from 1.10.95 onwards till the date of payment or decree whichever is earlier for an amount of Rs.25,64,362/- a simple interest of 15% per annum shall be payable. Accordingly, I award that the Respondents to pay the Claimants an amount of Rs.14,42,454/- as pre-suit and pendentalite interests and future interest as simple interest @ 15% per annum on an amount of Rs.25,64,362.00 from 1.10.1995 onwards till the date of payment or decree whichever is earlier.” (emphasis supplied)

5. Learned Single Judge while disposing of the judgment debtor-DDA’s objection petition observed with regard to interest as under :-

“32. The objections having been disposed of, the award of the sole Arbitrator Shri C. Rama Rao dated 30.9.1995 is made rule of the court with the modifications whereby the award in respect of the claim for escalation, being claim No.1 is set aside and part of the amount towards the final bill dealing with cutting and straightening of reinforcement steel bars is also set aside and the interest is awarded on the awarded amounts at simple rate of interest of 12% per annum for past and pendent lite period. The petitioner shall also be entitled to future interest at the rate of 9% simple interest from the date of decree till date of realization. However, if the respondent pays the decretal amount within 60 days from today, the respondent would be exempted from payment of future interest. Parties are left to bear their own costs.”

(emphasis supplied)

6. Mr. Sudhir Nandrajog, learned senior counsel for decree holder submitted that the decree holder is not claiming interest on interest from the date of Award to the date of decree but is only claiming interest on interest from the date of decree to the date of payment as according to him, learned Single Judge has awarded 9% per annum simple interest on the decretal amount, which amount would include interest for the pre suit, pendente lite and post-Award period up to the date of decree. In this connection, Mr. Nandrajog relied upon the direction of the learned Single Judge to the effect that in case respondent-DDA did not pay the decretal amount within sixty days, it would have to pay future interest @ 9% simple interest on the entire decretal amount.

7. Mr. Nandrajog also placed relianc