Back
IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
M/s. Buildworth Pvt. Ltd. – Appellant
Versus
Bharat Heavy Electrical Ltd. – Respondent
CRP(IO) No. 437 of 2018
Decided On : 25-11-2021
Arbitration and Conciliation Act, 1996 - Section 31(7), (a), (b) - Constitution of India, 1950 - Article 227 – Arbitration Dispute - Appointed Arbitrator - Interest on Principal Amount - Question involved in all these four petitions is regarding entitlement of petitioner for future interest for period from date of award till realization - Whether petitioner is entitled to future interest in terms with Section 31 (7) (b) of Act of 1996.
Finding of the Court:
Contention so raised that petitioner has is not diligent and they were equally responsible for delay in execution proceeding for which petitioner is not entitled to interest under Section 31(7) (b) at rate of 18% is also totally misconceived inasmuch as said contention goes against legislative intent behind enactment of Section 31(7)(b), as observed by Supreme Court in judgments quoted hereinabove - Further to that said submission cannot be taken into consideration in as much as respondent having not deposited awarded sum with interest cannot raise such a contention - In view of above, both orders are interfered with and parties are directed to also appear before Court and Executing Court is directed to proceed with execution and said awards in terms with observations made hereinabove as well as judgments of Supreme Court quoted hereinabove.
Result: Petitions allowed
JUDGMENT :
DEVASHIS BARUAH, J.
1. Heard Mr. D Das, the learned senior counsel appearing on behalf of the petitioner assisted by Mr. R Sarma. I have also heard Mr. D Mazumdar, learned senior counsel for the respondent.
2. All the four petitions before me question the common order dated 07.06.2018 and 09.10.2018 passed by the Court of District Judge, Kokrajhar in Money Execution Case No. 26/2015, Money Execution Case No. 27/2015, Money Execution Case No. 28/2015 and Money Execution Case No. 29/2015. The question involved in all these four petitions is regarding the entitlement of the petitioner for future interest for the period from the date of the award till realization, inasmuch as vide the order dated 09.10.2018, the Court below, which is the Executing Court had come to a finding that the petitioner would only be entitled to interest on the principal amount from the date of filing the claim petitions till 07.03.2006 (the date of the award) at the rate of 12% and the petitioner is not entitled to the benefit under Section 31(7) (b) of the Arbitration and Conciliation Act, 1996 (for short, the Act of 1996). As all the four revision applications raised the same question of law and have also assailed the common orders dated 07.06.2018 and 09.08.2018, I am proposing to dispose of all the four revision applications by way of the instant order.
3. The brief facts for the purpose of the instant case are that the disputes arose between the petitioner and the Bharat Heavy Electrical Ltd. (for short, BHEL) and as the said dispute was covered by an arbitration agreement; an Arbitrator was appointed for resolution of the said disputes which lead to an initiation of Arbitration Case No. 03/2004, Arbitration Case No. 04/2004, Arbitration Case No. 05/2004, Arbitration Case No. 06/2004 and Arbitration Case No. 07/2004 respectively. By the common award dated 07.03.2006, in paragraph no. 30 which was the issue no. (iii) in the said proceedings, the learned Arbitrator decided the entitlement of the petitioner (the claimant therein). The said paragraph 30 is quoted herein-below:
30. I have given my anxious consideration in the matter and considering the facts and circumstances of the case, I am of the opinion that the claimant is also entitled for the costs and interest as indicated below:
| Arbitration Case No. 3/2004 | The claimant is entitled to receive the amount of Rs.25,28,172/- withheld by the respondents towards liquidated damages entitled to recover from BHPVL. The claimant is also entitled for interest on the aforesaid amount @12% from 22.07.1999 till the date of the award. |
| Arbitration Case No. 4/2004 | The claimant is entitled to receive the amount of Rs.1,75,000/- withheld by the respondents towards liquidated damages entitled to recover from BHPVL. The claimant is also entitled for interest on the aforesaid amount @12% from 02.06.2000 till the date of the award. |
| Arbitration Case No. 5/2004 | The claimant is entitled to receive the amount of Rs.93,158/- withheld by the respondents towards liquidated damages entitled to recover from BHPVL. The claimant is also entitled for interest on the aforesaid amount @12% from 02.06.2000 till the date of the award. |
| Arbitration Case No. 5/2004 | The claimant is entitled to receive the amount of Rs.93,158/- withheld by the respondents towards liquidated damages entitled to recover from BHPVL. The claimant is also entitled for interest on the aforesaid amount @12% from 02.06.2000 till the date of the award. |
| Arbitration Case No. 6/2004 | The claimant is entitled to receive the amount of Rs.12,06,869/- withheld by the respondents towards liquidated damages entitled to recover from BHPVL. The claimant is also entitled for interest on the aforesaid amount @1 |
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
