B.C. Varma, Ag. C.J. -- 1. In this appeal u/S. 39 of the Arbitration Act against the judgment making the award of the arbitrator the rule of the Court and consequent decree, the only question agitated relates to the award of interest on the principal amount found due to the respondent.

2. On 13th August, 1986, the Civil Court in a pending suit between the parties, appointed Shri V. Balasubramanyam, Additional Divisional Railway Manager (Technical), South-Eastern Railway, Bilaspur the sole arbitrator. Claims were laid before the arbitrator who by its award held the respondent entitled to Rs. 1,19,926/- in full and final settlement of the various claims in suit. In addition, a sum of Rs. 1,60,749/- has been awarded towards the full and final settlement of claim of interest up to the date of the making of the award. Some small amounts were also awarded towards the incidental expenses and other clerkage charges. •Then, while concluding, the arbitrator awarded simple interest at Rs. 12/- per cent per annum on a sum of Rs. 2,80,675/- (Le., the total sum awarded) from the date of award till payment.

3. When the award was filed in the Court, the appellant objected to the award of Rs. 1