HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT

JAIPUR

S.B CIVIL MISC. APPEAL NO. 5334/2011

1.

Rajasthan State Road Development and Construction

Corporation Ltd., Setu Bhawan, Jahlanadoongari through

Managing Director.

2.

Rajasthan State of Road Development and Constructin

Corporation Ltd. Setu Bhawan, Jahlanadoongri through

Resident Engineer, Unit-II, Jaipur.

….Appellants/Non-claimants

Versus

Jagdish Prasad Agarwal, AA Class PWD Contractor, 13 Alkapuri,

Alwar, partnership firm through partner Jagdish Prasad Agarwal.

….Respondent/Claimant

_____________________________________________________

For Appellant(s) : Mr VP Mathur

For Respondent(s) : None

_____________________________________________________

HON'BLE MR. JUSTICE M.N.BHANDARI

Order

06/11/2017

None appears for the claimant-respondent. By this writ

petition, a challenge is made to the order dated 21.12.2010

passed by the learned District Judge and the award dated

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[CMA-5334/2011]

24.7.2003 passed by the sole Arbitrator.

It is submitted that total claim was assessed at

Rs.10,72,785/-. The amount of interest on it was then calculated

at Rs.4,97,650/-. The Arbitrator allowed 12% interest per annum

on the total sum i.e. on the principal as well as interest thereby

interest was allowed on the amount of interest, till realisation. The

issue was raised, however, other than interference in the rate of

interest by bringing it from12% to 6%, learned ADJ did not

interfere in the award pursuant to the objection under section 34

of the Arbitration and Conciliation Act, 1996. The petitioner has

deposited the entire amount pursuant to the interim order of this

court, however, interest on interest was not permissible thus, to

that extent, interference in the award as well as the order of the

ADJ may be made.

None is there to oppose the appeal under section 37 of

the Act of 1996.

The interest can be allowed by the Arbitrator but it

could not have given interest on interest till its realisation thus the

Arbitration award is modified only to the extent. The interest

calculated by the Arbitrator on the principal amount till passing of

the award is maintained, however, subsequent interest would be

on the principal amount of Rs.10,72,785/-. The appeal is disposed

of accordingly. The amount already deposited would be released in

favour of the parties by the ADJ No.4, Jaipur City, Jaipur. The

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[CMA-5334/2011]

amount would be released as per this order.

(MN BHANDARI) J.

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