Back
2015 Supreme(Del) 3283
IN THE HIGH COURT OF DELHI AT NEW DELHI
GITA MITTAL, I.S.MEHTA, JJ.
ECE INDUSTRIES LTD - Appellant
versus
DELHI POWER SUPPLY COMPANY LTD & ORS - Respondent
EFA(OS) 11/2015 & CM Nos.6787-88, 6791/2015, EFA(OS) 12/2015 & CM Nos.6889, 6892/2015
Decided on : 23.11.2015
Advocate Appeared:
Mr. Amandeep Bawa, Adv.
Mr. Ravi Gupta, Sr. Adv. with Mr. Deepak Pathak, Adv. for R-3 & 4
The main legal point established is that parties are entitled to interest as per the arbitral award, in accordance with the provisions of the Arbitration and Conciliation Act, 1996.
Headnote:
Interest Computation - Arbitration Award - Arbitration and Conciliation Act, 1996, Section 31(7)(b) - 11.4 Interest, 11.5 Counter Claim, 11.7 Payment of interest
Fact of the Case:
Disputes arose between the appellant and the Delhi Vidyut Board, culminating in an arbitral award dated 9th April, 2002. The appellant complained of not receiving the entire interest amount as per the award and filed a petition. The court directed payment of interest in accordance with the award.
Finding of the Court:
The court found that the appellant was entitled to interest computed in terms of the award, and set aside the previous orders denying interest.
Issues: Dispute over interest computation as per the arbitral award, challenge to previous court orders denying interest.
Ratio Decidendi: The court held that the appellant and respondent were entitled to interest computed in terms of the award, as per the Arbitration and Conciliation Act, 1996, Section 31(7)(b).
Final Decision: The appeals were allowed, and pending applications were disposed of in favor of the appellant and respondent, setting aside the previous orders denying interest.
GITA MITTAL, J
CM No.6791/2015 in EFA(OS) 11/2015 CM No.6892/2015 in EFA(OS) 12/2015
1. These applications are allowed.
CM No.6788/2015 in EFA(OS) 11/2015
Heard. For the reasons stated, the delay in filing is condoned.
The application is allowed in the above terms.
EFA(OS)Nos.11&12/2015
2. Disputes arose between the appellant and the Delhi Vidyut Board. The same were referred for arbitration which proceedings culminated in an arbitral award dated 9th April, 2002which awarded amounts in favour of both parties. On 1st July, 2002 Delhi Vidyut Board unbundled into three holding companies, being Genco (Indraprastha Power Generation Company), Transco (earlier Delhi Power Supply Company Ltd. and three DISCOMS, being distribution companies which were i) BSES Yamuna Power Ltd., ii) BSES Rajdhani Power Ltd. and iii) North Delhi Power Ltd.
3. In terms of the Award, respondent no.2-Delhi Power Company Ltd. made payment of Rs1,34,18,612.84 on 11th September, 2002 to the decree holder. On 27th January, 2004, further payment of Rs.67,39,859/- was made to the respondent no. 1.
4. The appellant-decree holder complained that it had not received the entire interest amount in terms of the award and filed Ex.Pet.No.47/2004. On 21st April, 2014, the learned Single Judge extracted the summary of the quote as detailed in the award and was of the view that the interest has to be paid only on the amount summarised therein. It was held that the computation was filed by the appellant was consequently completely erroneous inasmuch as the appellant had sought to compute interest on Rs.1,84,98,870.84 from the date of the award and thereafter had made deductions as made in the award and the prayer for payment of the amounts towards interest was rejected. The court extracted the dates on which payments became due as noted by the Arbitrator and directed payment in terms thereof.
5. Aggrieved by the order dated 21st April, 2014, the appellant filed EA No. 377/2014 in the Execution Petition. The appellant has challenged the order dated 21st April, 2014 by way of EFA(OS)No.11/2015 before us.
6. So far as consideration of EA No. 377/2014 filed by the appellant in the Execution Petition is concerned, by this application the appellant sought modification/clarification of the order dated 21st April, 2014. Operative part of the order dated 21st April, 2014 is as follows :
“......interest has to be computed on the net amount and not on the gross amount, by ignoring the deductions made in the award itself. In the view of the aforesaid, the following amounts are payable to the decree holder/award holder under the award: i) Rs.62,82,676.84 along with interest @ 18% p.a. with effect from 09.05.2002 till the date of payment; ii) Rs.50,41,000 alongwith interest @ 18% p.a. with effect from 09.10.2002. The execution petition discloses that an amount of Rs.1,34,18,612.84 was paid on 11.09.2002 and Rs.67,39,859/- was paid on 28.01.2004. the Judgment Debtors do not raise any disputes about the said amount being paid and the dates on which they were paid. In light of the aforesaid, the matter is now referred to the Registrar General to make computation of the amount, if any, payable under the award as on date......”
7. This application was dismissed by the learned Single Judge by an order dated 16th January, 2015 holding that the order dated 20th May, 2014 was in accordance with the award relying on para 11.5.1 and that payments were made after fulfilment of certain conditions and obligations by the appellant-decree holder. The order dated 16th January, 2015 has been assailed by way of EFA(OS) No. 12/2015 before us. Inasmuch as the challenge is on identical grounds, we are taking both the appeals together for consideration and adjudication.
8. By way of EFA(OS) No. 12/2015, the appellant has assailed the order dated 16th January, 2015 passed by the learned Single Judge in Execution Petition No. 47/2004 wherein the learned Single Judge has denied pre-reference and post-ref
