Back
YASHWANT VARMA, DHARMESH SHARMA
National Projects Constructions Corporation Ltd. – Appellant
Versus
Interstate Construction – Respondent
JUDGMENT
Yashwant Varma, J. The present appeal under Section 37 of the Arbitration and Conciliation Act, 1996 [the Act] impugns the judgment dated 02 August 2021 rendered by a learned Single Judge on the petition under Section 34 of the Act preferred by the appellant. The appellant also seeks partial setting aside of the impugned Award dated 28 October 2020. However, Mr. Mehta learned senior counsel appearing in support of the appeal clarified that the challenge stands restricted to the directions framed by the Arbitral Tribunal [AT] insofar as the issue of interest is concerned.
2. In order to appreciate the nature of the challenge which stands raised, Mr. Mehta drew our attention to the following operative directions as framed by the AT while considering the issue of interest:
"58.....
In nutshell the Claimant is held entitled to interest as under:
a) Pre-reference/past period interest:
@ 18% per annum on a sum of Rs.34,43,490.61 w.e.f. July 1987 up till 19.01.1998.
b) Pendente-lite interest:
i) @ 12% per annum w.e.f. 20.01.1998 up till 31.12.2008 on the total amount (i.e. principal amount and the amount of interest of the pre-reference/past period).
ii) @ 12% per annum w.e.f. 01.01.201
(1) Interest has to be awarded as specified in contract and in absence of any contract, as per discretion of Arbitral Tribunal - Arbitral Tribunal can grant pre-reference interest from date on which ....
Arbitral Tribunal's power to grant interest for the period post award till realization is subject to the discretion only in respect to the rate as it is the mandate of the law to grant such interest ....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
