JUDGMENT

VIBHU BAKHRU, J.

1. PCL STICCO (JV) [the Award Holder] has filed the present appeal under Section 13(1A) of the Commercial Courts Act, 2015, [the CC Act] impugning a judgment dated 19.12.2023 [the impugned judgement] passed by the learned Single Judge of this court in OMP (ENF) (COMM) No.116/2020 captioned PCL STICCO (JV) v. National Highways Authority of India (NHAI). In terms of the impugned judgment, the learned Single Judge had disposed of the Award Holder’s application under Section 36 of the Arbitration and Conciliation Act, 1996 [the A&C Act] seeking the enforcement of the arbitral award dated 15.12.2015 [the Arbitral Award].

2. The learned Single Judge accepted the Respondent’s [Judgement Debtor] contention that the balance sum of ₹73,96,511/- was payable to the Award Holder and the same would be paid along with the interest within a period of three weeks from the said date. The learned Single Judge disposed of the Award Holder’s petition for enforcement of the Arbitral Award with the clarification that if the amount as stated was not paid by the Respondent, the Award Holder would have the liberty to revive the said proceedings.

3. The Award Holder disputes that the balance amount as payable under the Arbitral Award would stand satisfied with the payment as mentioned by the Judgement Debtor, as it does not take into account the interest payable on the amounts deposited by the Judgement Debtor in the said proceedings with the Registry of this court. According to the Award Holder, it is entitled to interest as awarded including on the amount deposited by the Judgement Debtor with the Registry of this court till the date of its release. It claims that the interest as awarded in terms of the Arbitral Award would not stop running till the payments are made.

4. The Judgement Debtor contends to the contrary, it claims that the amount deposited by it with the Registry of this court is required to be considered as the amount tendered to the Award Holder; therefore, the interest on the remaining principal amount (after adjustment of interest due on the date of the deposit) would stop running.

5. The limited controversy to be addressed is whether the liability to pay interest on the amount deposited by the Judgment Debtor with the Registry of this court would cease from the date of the said deposit.

FACTUAL CONTEXT

6. The Judgement Debtor had invited tenders for widening of 4/6 lanes and strengthening of the existing 2-Lane carriageway of NH-5 from KM 284.000 to KM 338.000 (Gangam to Sunakhala Project) in the State of Orrisa [Construction Package OR-VII] and the agreement dated 20.08.2001 was executed between the parties. Certain disputes arose between the parties in connection with the aforesaid agreement dated 20.08.2001 and the same was referred to arbitration. The arbitral proceedings culminated in an Arbitral Award dated 15.12.2015.

7. The dispossessive part of the Arbitral Award is set out below: -

“1. A sum of Rs.6,10,17,434/- towards its claim No. 1 for the value of work executed but not paid with 10% p.a. interest compounded monthly as per the terms in the contract from the date of expulsion, i.e., 03/04/2008 to the date of award.

2. A sum of Rs.5,28,53,000/- towards the cost of confiscated machinery against its claim No.3, with 10% p.a. simple interest from the date of expulsion, i.e. 03/04/2008 to the date of award.

3. A sum of Rs.27,00,30,461/- towards its claim No.4 relating to the forfeiture of the Bank Guarantees with 10% p.a. simple interest from the date of encashment of the Bank Guarantees, i.e., 03/04/2008 to the date of award.

4. In case the payments as at S.No. 1 to 3 above are not made in a period of three months from today, the claimant shall also be entitled to be paid future interest @ 12% p.a. on the sums awarded inclusive of interest in S.No. 1 to 3 above(in the light of M/s Hyder Consulting (UK) Ltd. vs. State of Orissa, Civil Appeal No.3148 of 2012 decided by the Hon’bl