LexGHULAM MOHAMMAD DAR versus STATE OF J & K & ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
[2008] 1 S.C.R. 13
GHULAM MOHAMMAD DAR
II.
STATE OF J & K & ORS.
(C.A. No. 12 of 2008)
JANUARY 4, 2008
[G.P. MATHUR AND P. SATHASIVAM, JJ.]
-{ Arbitration - Interest on award amount - High Court
hoiding that interest@ 18% p.a. for award amount from date·
A
B
of decree till realization - Claimant's case that interest on c
decretal amount to be paid from date of Award and not from
date of decree - On appeal,, held: Order of High Court upheld
- Moreso, interest was to be paid by State Government -
Interest.
An arbitrator passed an award in favour of the D
claimant. High Court made the award the Rule of the Court
and the amount found due along with interest awarded
by the Arbitrator was to be paid from the date of decree
with interest at 18% till final realization of the decretal
amount of the petition. Hence the present appeal.
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Appellant contended that in view of default in
payment of the amount within the stipulated time, the
appellant was entitled to interest@ 18% p.a. from the date
of the Award and not from the date of the decree.
_; Disposing of the appeal, the Court
.'
HELD: The direction of the Arbitrator and the order
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passed by the High Court both in the Arbitration Petition
and Revision Petition is verified. On perusal of the same
and of the fact that the respondents are none other than G
the State Government, the order of the High Court passed
in~rbitration Petition is concurred with and held that the
claimant is entitled to interest @ 18% p.a. for the award
amount from the date of the decree till realization. To this
extent, the position is clarifimJ. [Para 8] [15-F, G]
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14
SUPREME COURT REPORTS
[2008) 1 S.C.R.
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CIVIL APPELLATE JURISDICTION: Civil Appeal No. 12 .
)
of 2008
From the final Judgment and Order dated 1.2.2006 of the
High Court of Jammu & Kashmir at Srinagar in C.R. No. 47/
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200€1
M.L. Bhat, Purnima Bhat for the Appellant.
Anis Suhrawardy and S. Mehdi Imam for the Respondents.
The Judgment of the Court was delivered by
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P. SATHASIVAM, J. 1) Leave granted.
2) This appeal is directed against the order dated
01.09.2006 passed by the High Court of Jammu and Kashmir
at Sri Nagar in Civil Revision No. 47 of 2006 whereby the High
D Court dismissed the civil revision filed by the appellant herein.
3) In view of the limited issue i.e., interest payable by the
respondents, there is no need to traverse the entire factual matrix
except relating to the issue in question.
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4) According to the appellant, the executing Court has
wrongly interpreted the judgment passed by the High Court as
well as the provisions of the Arbitration Act and erroneously
refused to release the interest on the Award/decretal amount
from the date of Award till passing of the decree.
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5) It is not in dispute that an Award came to be passed on
...
05.09. 1995 which was made a Rule of the Court and accordingly
decree came to be passed on 30.04.1998.
;
6) It is relevant to reproduce the Award of the Arbitrator in
respect of the interest which reads as under:
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'The claimant shall be entitled to 10% S.l.P.A. beyond
10.11.1995 till payment is made in full by the respondents
,.
of the full awarded amount. Respondent No.3 shall be
liable to discharge and pay the final bill pending since
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27 .12.1993 with him failing which 18% P.A. simple interest
GHULAM MOHAMMAD DAR v.
15
STATE OF J & K & ORS. [Sathasivam, J.]
.,
shall. be paid over and above from 1.2.1994 till date of A
actual payment."
Though there is little confusion in the direction of the
Arbitrator, it is presumed that the Arbitrator has granted interest
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@ 10% (simple interest p.a.) from 10.11.1995 till payment is
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made in full by the respondents. The latter part of the said
direction shows that in case of default, the Award amount carries
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interest@ 18% simple interest per annum from 01.02.1994 till
date of actual payment.
7) On 30.04.1998, learned single Judge of the High Court c
disposed of Arbitration Petition No. 171 of 1991 by passing the
following order:
"In the totality of the circumstances, I order that let
award be made rule of the Court and the amounts found
due along with interest awarded by the Arbitrator be paid D
from the date of decree with interest at 18% till final
t,
realization of the decretal amount of the petition. Let decree
be prepared accordingly."
8) Learned senior counsel appearing for the appellant, by
drawing our attention to the directioExcerpt shown. Read the full judgment & AI analysis in Lexace.