Point of law : learned Arbitrator in his discretion can award pendentelite and future interest from the date of award till realization of the awarded amount because the terms of the contract did not prohibit the same.

JUDGMENT :

1. This appeal, filed by the Administrator Auqaf Islamia Wakaf, is directed against the order dated 09.01.2019 passed by the Additional District Judge, Jammu in File No.11/Misc, whereby the application filed by the appellant under Section 34 of J&K Arbitration and Conciliation Act, 1997 came to be dismissed holding that the arbitrator has given sufficient and cogent reasons for disallowing the claims raised by the appellant herein and allowing only one claim on account of mobilization advance. Thus, all the objections raised by the appellant herein came to be rejected.

2. The facts-in-short, as gathered from the appeal file, are that Notice Inviting Tender bearing No.1184-98/AQ dated 21.07.1998 was issued by the Administrator Auqaf, Jammu inviting sealed tenders from the eligible contractors for the construction of Haj House Complex at Rail Head Complex, Jammu. Tender of M/s. R.S. Construction Engineers, respondent No.1 herein, came to be found lowest, thus approval for allotment of contract was granted to it by the appellant herein for an amount of Rs.3,77,58,698/- vide Govt. Order No.Rev/Haj and Auqaf-6/85 dated 18.01.1999. Thereafter contract came to be allotted to respondent No.1 vide Letter No.1897-98/AQ dated 3.3.1999. An agreement to this effect was executed on 08.05.1999 between Administrator Auqaf, Jammu and contractor-respondent No.1 herein. As per the contract agreement, the work was required to be commenced on 10.03.1999 and completed on 10.09.2001. Since several disputes arose between the parties to the agreement, respondent No.1 approached this Court for appointment of an independent arbitrator and with the consent of both the parties; one Sh. S.K. Gupta came to be appointed as the sole arbitrator to adjudicate upon the disputes which had arisen between the parties to the agreement. It is pertinent to mention that during the pendency of arbitration application for appointment of an independent arbitrator, the appellant herein terminated the contract on 18.10.2007.

3. Be that at it may, both the parties participated in the arbitration proceedings, filed their claims and counter claims and also led evidence. The sole arbitrator after completion of arbitration proceedings passed the award dated 31.01.2010.

4. Against the said award, the Administrator Auqaf Islamia Wakaf-appellant herein filed a petition under Section 34 of the J&K Arbitration and Conciliation Act, 1997 for setting aside of the award dated 31.01.2010. It was pleaded before the learned Additional District Judge that since the basic agreement was void as the same was against the provisions of law contained in the Waqafs Act, as such the arbitration provided by such agreement is also void. It was also pleaded that the agreement-in-question as well as the subject matter of dispute was also not capable of settlement by arbitration as the jurisdiction of the Civil Courts was barred under the provisions of Waqafs Act. It was also contended by the appellant herein that Claim Nos.1, 2, 3, 4, 6, 7, 8, 10 & 12 allowed by the arbitrator in favour of respondent No.1 herein were not only against the express terms and conditions of the contract, but also unjustified, based on no evidence, imaginary and without any jurisdiction.

5. Learned Additional District Judge, Jammu after discussing in detail the preliminary objections as well as the objections raised by the appellant herein with regard to Claim Nos.1, 2, 3, 4, 6, 7, 8, 10 & 12, rejected the same vide order dated 09.01.2019. Hence, the present appeal.

6. I have heard learned counsel appearing for the parties, considered their respective contentions, gone through the appeal file as well as the award dated 31.01.2010 passed by the learned arbitrator and the order dated 09.01.2019 of Additional District Judge, Jammu.

7. The appellant herein while challenging the award dated 31.01.2010 passed by the sole arbitrator had raised six preliminary objections before the learned Additional District Judge, Jammu. The s