{"id":17039,"date":"2009-11-05T00:00:00","date_gmt":"2009-11-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-ms-gupta-electric-company-and-on-5-november-2009"},"modified":"2015-12-23T19:39:57","modified_gmt":"2015-12-23T14:09:57","slug":"union-of-india-vs-ms-gupta-electric-company-and-on-5-november-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-ms-gupta-electric-company-and-on-5-november-2009","title":{"rendered":"Union Of India vs M\/S Gupta Electric Company And &#8230; on 5 November, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">Union Of India vs M\/S Gupta Electric Company And &#8230; on 5 November, 2009<\/div>\n<pre>FAO No. 3686 of 2009                                                         1\n\n\n\n      IN THE HIGH COURT OF PUNJAB AND HARYANA AT\n                     CHANDIGARH\n                                        --\n\n                                 FAO No. 3686 of 2009 (O&amp;M)\n                                 Date of decision: November 05 , 2009\n\n\nUnion of India                                          ........ Appellant\n\n             Versus\n\nM\/s Gupta Electric Company and another                    .......Respondent(s)\n\n\nCoram:       Hon'ble Ms Justice Nirmaljit Kaur\n                      -.-\n\n\nPresent:     Mr. Nitin Kumar, Advocate\n             for the appellant\n                    -.-\n\n      1.     Whether Reporters of local papers may be\n             allowed to see the judgment?\n\n      2.     To be referred to the Reporter or not?\n\n      3.     Whether the judgment should be reported in\n             the Digest?\n\nNirmaljit Kaur, J.\n<\/pre>\n<p>             This is an appeal against the order dated 18.12.2008 passed by<\/p>\n<p>the Additional District Judge, Ambala, dismissing the petition filed by the<\/p>\n<p>appellant under Section 34 of the Arbitration and Conciliation Act, 1996 (in<\/p>\n<p>short the 1996 Act) for setting aside the award dated 31.01.2008 qua awarding<\/p>\n<p>of the interest.\n<\/p>\n<p>             While challenging the aforesaid order, the only ground raised by<\/p>\n<p>the learned for the appellant is that the award of interest on final bill is totally<\/p>\n<p>illegal and illogical. The Arbitrator under Claim 8(c ) has allowed interest at<br \/>\n<span class=\"hidden_text\"> FAO No. 3686 of 2009                                                           2<\/span><\/p>\n<p>the rate of 12% from 10.12.1997 and in claim No. B-7 allowed interest on<\/p>\n<p>Rs.54,133\/- at 12% from 27.09.1999 and claim C-3 awarded interest on<\/p>\n<p>Rs.9944\/- at 12% from 28.09.1999 and thereafter the Arbitrator allowed<\/p>\n<p>interest at the rate of 12% on the total claim amount after three months from<\/p>\n<p>the date of receipt of the award.\n<\/p>\n<p>             It is apparent as also from the ground of appeal that the appellant<\/p>\n<p>has accepted the rest of the award given by the Arbitrator and the challenge in<\/p>\n<p>the present appeal is only to the extent of the interest awarded.<\/p>\n<p>             I find no merit in the arguments raised by the learned counsel for<\/p>\n<p>the appellant.\n<\/p>\n<p>             Section 31 (7) (a) and (b) of the Arbitration and Conciliation Act,<\/p>\n<p>1996, read as under:-\n<\/p>\n<blockquote><p>             &#8220;7(a) Unless otherwise agreed by the parties, where and in so<br \/>\n             far as an arbitral award is for the payment of money, the<br \/>\n             arbitral tribunal may include in the sum for which the award is<br \/>\n             made interest, at such rate as it deems reasonable, on the<br \/>\n             whole or any part of the money, for the whole or any part of<br \/>\n             the period between the date on which the cause of action arose<br \/>\n             and the date on which the award is made.\n<\/p><\/blockquote>\n<blockquote><p>             (b)   A sum directed to be paid by an arbitral award<br \/>\n             shall,unless the award otherwise directs, carry interest at the<br \/>\n             rate of eighteen per centum per annum from the date of the<br \/>\n             award to the date of payment.&#8221;<\/p><\/blockquote>\n<p>             It is, therefore, apparent that it is well settled by various<\/p>\n<p>judgements of the Apex Court that the award of interest is the discretion of the<\/p>\n<p>Court. It is also well settled that like the grant of interest, rate of interest is<\/p>\n<p>also the discretion of the Court and in the absence of any agreement between<\/p>\n<p>the the parties, the court does not interfere unless the same is bad in law.<br \/>\n<span class=\"hidden_text\"> FAO No. 3686 of 2009                                                       3<\/span><\/p>\n<p>            Learned counsel for the appellant has not pointed out as to how<\/p>\n<p>the rate of interest is arbitrary and the same is beyond the agreement or is not<\/p>\n<p>in accordance with Section 31 (7) (a) and (b), referred to above.<\/p>\n<p>            The Hon&#8217;ble Apex Court in the case of                   &#8216;<a href=\"\/doc\/206777\/\">M\/s Manalal<\/p>\n<p>Prabhudayal v. Oriental Insurance Co. Ltd.,<\/a> 2006(4) R.C.R. (Civil) 234,,<\/p>\n<p>while allowing the appeal, set aside the order of the High Court reducing the<\/p>\n<p>rate of interest from September 19, 1995 till the award and till the amount is<\/p>\n<p>paid\/deposited in the Court from 12% to 6% per anum and held that the award<\/p>\n<p>passed by the Arbitrator granting interest at the rate of 12% per annum all<\/p>\n<p>throughout, that is, for pre-reference period, pendente lite and post award<\/p>\n<p>period, was correct.\n<\/p>\n<p>            No other ground was raised<\/p>\n<p>            No merit.\n<\/p>\n<p>            Dismissed.\n<\/p>\n<p>.\n<\/p>\n<p>                                                          (Nirmaljit Kaur)<br \/>\n                                                                  Judge<br \/>\nNovember 05, 2009<br \/>\nmohan\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court Union Of India vs M\/S Gupta Electric Company And &#8230; on 5 November, 2009 FAO No. 3686 of 2009 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH &#8212; FAO No. 3686 of 2009 (O&amp;M) Date of decision: November 05 , 2009 Union of India &#8230;&#8230;.. Appellant Versus M\/s Gupta [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-17039","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Union Of India vs M\/S Gupta Electric Company And ... on 5 November, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-ms-gupta-electric-company-and-on-5-november-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Union Of India vs M\/S Gupta Electric Company And ... on 5 November, 2009 - Free Judgements of Supreme Court &amp; 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