REPORTABL E IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 3148 OF 2012 M/S. HYDER CONSULTING (UK) LTD. ... APPELLANT VERSUS GOVERNOR, STATE OF ORISSA THROUGH CHIEF ENGINEER ... RESPONDENT WITH CIVIL APPEAL NO. 3147 OF 2012 CIVIL APPEAL NO. 3149 OF 2012 CIVIL APPEAL NO. 1390 OF 2013 S.L.P. (C) NO. 19895 OF 2008 S.L.P. (C) NO. 20282 OF 2008 S.L.P. (C) NO. 21896 OF 2010 S.L.P. (C) NO. 18614 OF 2012

JUDGMENT

H.L. DATTU, CJI.

1. In view of the reference order dated 13.03.2012, this Civil Appeal and the matters connected therewith are placed before a three-Judge Bench of this Court for consideration and decision. The question before this Court is, whether the decision of this Court in State of Haryana and Others v. S.L. Arora and Company., (2010) 3 SCC 690, wherein it is held that an award of interest on interest from the date of award is not permissible under sub- section (7) of section 31 of the Arbitration and Conciliation Act, 1996 (for short, “the Act, 1996”), is in consonance with earlier decisions of this Court. A two-Judge Bench of this Court, by the said reference order, is of the opinion that the present appeal and the connected matters would need to be heard by a Bench of three Judges of this Court.

2. By the referral order dated 13.03.2012, it is found that the learned counsel for the appellants therein would doubt the correctness of the decision in the S.L. Arora case (supra) in light of McDermott International INC v. Burn Standard Co. Ltd. and Others, (2006) 11 SCC 181; Uttar Pradesh Cooperative Federation Limited v.

Three Circles, (2009) 10 SCC 374; Oil and Natural Gas Commission v. M.C. Clelland Engineers S.A., (1999) 4 SCC 327; and Central Bank of India v. Ravindra and Others (2002) 1 SCC 367. Therein, the appellants would contend that, in accordance with the decision of this Court in the aforementioned cases, the interest awarded on the principal amount upto the date of award, becomes the principal amount for the purposes of awarding future interest under the Act, 1996. The appellants would contend that the decision in the S.L. Arora case (supra) inadvertently and erroneously assumed that the aforementioned cases would not be applicable to it. Since the decision in the S.L. Arora case (supra) negated the above stated principle, the appellants would contend that the said case would require reconsideration by a larger Bench of this Court.

FACTS :

Civil Appeal No.3148 of 2012

3. The present civil appeal came before a two-Judge Bench of this Court against a judgment and final order dated 28.07.2010, passed by the High Court of Orissa at Cuttack in Writ Petition (Civil) No. 5302 of 2009. The said Writ Petition was filed challenging the orders dated 19.02.2009 and 26.03.2009, passed by the District Judge, Khurda in Execution Petition No. 17 of 2006, whereby the learned District Judge had issued order of attachment in favour of the appellant herein. The claim in the execution petition was for the payment of Rs.8,92,15,993/-. The said claim included in itself post award interest on the aggregate of the principal amount awarded by the arbitral award and interest pendente lite thereon. By virtue of arbitral award dated 26.04.2000, which was upheld by the Division Bench of the High Court of Orissa by its order dated 28.06.2006, a principal amount of Rs.2,30,59,802/- was awarded in favour of the appellant herein. The said impugned judgment of the High Court of Orissa dated 28.07.2010, inter alia, relied upon the decision of this Court in the S.L. Arora case (supra)

and quashed the orders passed by the learned District Judge, whereby Rs.8,92,15,993/- was awarded in favour of the appellant. The learned Judges of the High Court, vide the impugned judgment, directed the executing court to re-calculate the total amount payable under the award keeping in view the principles laid down in the S.L.

Arora case (supra).

4. According to the referral order dated 13.03.2012, the appellants contended that the S.L. Arora