Future interest can be awarded on the total amount adjudged, including any pendente lite interest, adhering to principles set forth in the Arbitration Act.

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done in physical Court. Hybrid mode is, however, permitted in cases where explicit permission has been taken from the Court.

CM APPL.41330/2021 (for exemption)

2. Allowed, subject to all just exceptions. Application is disposed of.

CM APPL.41331/2021 (delay in filing)

3. For the reasons stated in the application, the delay in filing the appeal is condoned. Application is disposed of.

EX.F.A.15/2021 & CM APPL.41329/2021

4. The present appeal has been preferred challenging the order dated 5th September, 2019 passed by the Ld. ADJ, South East District, Saket, New Delhi (hereinafter "Executing Court") in Ex. No.263/2017 titled "M/s. M.S.J. Construction Pvt. Ltd. v. Delhi Development Authority". By the impugned order, it was held that the term "amount so adjudged" shall include the pendente lite interest on the principal amount, thereby allowing execution in terms of the Arbitral Award dated 22nd September, 2008.

5. The short question that arises in the present appeal is whether future interest is liable to be granted upon the pendente lite interest of Rs.13,01,175/- as awarded by the Arbitral Award dated 22nd September, 2008, or not.

6. The background of this case is that the Appellant/Judgment Debtor- Delhi Development Authority (hereinafter referred to as "DDA") awarded a contract for construction of multi-storied buildings at Motia Khan to the Respondent/Decree Holder- M/s. M.S.J. Construction Pvt. Ltd. Disputes arose between the parties, and there were two rounds of arbitration proceedings in respect of the said disputes. In the first round, the Award dated 27th January, 1992 was set aside by this Court, vide order dated 8th September, 2006. The matter was referred afresh for arbitration, and fresh appointment was made. The ld. Arbitrator, in the second round, passed the Award dated 22nd September, 2008, wherein a sum of Rs.21,68.265/- was awarded, which was inclusive of interest on the principal amount of Rs.8.67,450/-, at the rate of 9% per annum w.e.f. the date of invocation of arbitration i.e., 25th January, 1992 till the date of Award i.e., 22nd September, 2008. Further, the Ld. Arbitrator held that in case the awarded amount was not paid within 3 months from the date of the Award, the Decree Holder/Respondent herein would be entitled to future interest at 12% per annum on the principal amount. The operative portion of the Award dated 22nd September, 2008 reads as under:

" In face of the reasons given above the claimant is entitled to Rs.7,95,000/- + 72450/- = Rs.867,450/-. It would be entitled to interest @ 9% per annum in view of the findings given above i.e. from 25.1.92 (Rs.13,01,175/-) Rs.8,67,450/- + 13,01,175/- = Rs.21,68,625/-. It is made clear that if the amount is not paid within three months claimant would be entitled to future interest @ 12% p.a. on the amount so adjudged till final payment is made."

7. The Arbitral Award dated 22nd September, 2008 was challenged and objections were filed by both the parties. The said Arbitral Award was, however, upheld and made rule of the Court by judgment dated 21st March, 2013. The Special Leave Petition being SLP (C) No.24382/2013 titled "Delhi Development Authority & Anr. v. M/s. MSJ Construction Pvt. Ltd." preferred by the Judgement Debtor/DDA challenging the said Award was also dismissed on 26th September, 2014.

8. An Execution Petition bearing no. Ex. P.109/2013 was filed by the Decree Holder in the 2013 and in the said execution, objections were raised by the Judgment Debtor/DDA insofar as the grant of interest upon interest is concerned. On 1s