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IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
JYOTSNA REWAL DUA, J.
Ranjit Singh - Petitioner
Versus
Himachal Pradesh State Electricity Board Ltd. - Respondent
Execution Petition No. 17 Of 2021
Decided On : 25-11-2022
Arbitration - Enforcement of Award - Arbitration and Conciliation Act, 1996 - Section 31(7)(b), Section 37(1)(b), Section 47 r/w section 151 CPC
Fact of the Case:
The execution petition sought to enforce an award passed by an arbitrator. The decree-holder claimed an amount which the judgment debtor disputed. The judgment debtor admitted that at least a certain amount was due to the decree-holder as per the award.
Finding of the Court:
The court directed the release of the amount deposited by the judgment debtor in favor of the decree-holder, while leaving all rights and contentions of the parties open.
Issues: Dispute over the calculation of the amount due to the decree-holder as per the award.
Ratio Decidendi: The court ordered the release of the deposited amount to the decree-holder, leaving all rights and contentions of the parties open.
Final Decision: The execution petition was disposed of as partly satisfied, with the court directing the release of the deposited amount to the decree-holder and leaving all rights and contentions of the parties open.
JUDGMENT :
(Jyotsna Rewal Dua, J.)
This execution petition seeks to enforce an award passed by the learned Arbitrator on 30.11.2019. Following amounts in different claims preferred by the claimant were allowed in the award as under:-
| Claim No. | Claim | Amount claimed | Amount awarded |
| 1 | Payment for slip removal and TDS | Rs. 1,63,988 | Rs. 1,63,988 |
| 2 | Balance payment of works other than slip removal | Rs.9,31,873.35 | 4,50,149/- |
| 3 | Payment on account of filling behind retaining walls | Rs.7,74,058/- | 6,72,913/- |
| 4 | Payment for difference in weight of tower materials | Rs.17,843.38 | Rs.17,843.38 |
| 5 | Interest | 18% | 12% per annum on all amounts awarded above till the date of award, whereafter interest at the statutory rates specified in Section 31(7)(b) would apply. |
In addition, an amount of Rs.75,000/- was awarded as costs.
2. In the execution petition preferred on 5.10.2021, the decree-holder has claimed following amount under the aforesaid amount:-
| 7 | Amount with interest due upon the decree or other relief granted thereby together with particulars of any cross decree | Principal amount as awarded against claims of the decree holder Rs.13,04,893.38/- Interest as per award on principal amount from 01.01.1989 upto 4.12.2019@ 12%. Rs.48,42,894.07/- Net amount payable to DH as on the date of award, i.e. 4.12.2019 Rs.61,47,787.45/- Interest as per Arbitration and Conciliation Act, 1996 after date of award i.e. from 5.12.2019 to 20.09.2021 @18% Rs.19,82,661.45/- Net amount payable to DH as on the date i.e. 20.09.2021 (excluding costs) Rs. 81,30,448.90/- The JD is also liable to pay costs and further interest on Rs.61,47,787.45/- as per Section 37(1) (b) of the Arbitration and Conciliation Act, 1996 till date of payment in addition to the costs of these proceedings. Further interest is calculated at Rs.3073.89 per day and Rs.92,216.81 per month. |
3. In the preliminary submission in its reply filed to the execution petition, the judgment debtor has stated as under:-
3. That it is the further humble and respectful submissions of the judgment debtor that as per the calculation of the judgment debtor the total amount payable to the decree-holder as per the award dated 04/12/2019 on and w.e.f. 01/01/1989 to 04/12/2019 @ 12% till the date of the award and thereafter @ 18 till 31/01/2022 which comes out to be Rs.67,29,955/- including costs as awarded by the Ld. Sole Arbitrator, but the decree-holder has claimed a sum of Rs. 81,30,448.90/- which is on the very higher side and is a wrong calculation. It is further the further humble and respectful submissions of the judgment debtor that keeping in view the calculations made by the judgment debtor the award in question stands fully satisfied except that the interest for the period of 02/2022 to 06/2022 which comes out to the tune of Rs. 97,867/- and the
The court's decision emphasized the enforcement of the arbitration award and the importance of leaving all rights and contentions of the parties open.
Point of Law : Decree/Award – Execution proceedings - Court in execution proceedings cannot go behind the decree.
The calculation of interest on a decretal amount must adhere strictly to the decree's terms, with no curtailment to earlier dates unless explicitly stated.
Arbitral awards must be honored in full, including accrued interest, and obligations remain until full payment is made, even if part payments have occurred.
Payment recognized under decree requires unconditional compliance; bank guarantees do not suffice, and interest continues until funds are available to the decree holder.
Awarded amount has to be paid together with future interest at rate of 12 percent per annum from date of award till date of payment on the awarded amount in favour of decree holder.
Future interest on an arbitral award must be calculated on the total sum directed to be paid, including both principal and interest components. Liability for such interest accrues starting from the d....
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