{"id":179401,"date":"1999-01-12T00:00:00","date_gmt":"1999-01-11T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/state-of-orissa-vs-shr-b-k-routray-on-12-january-1999"},"modified":"2016-12-14T11:58:03","modified_gmt":"2016-12-14T06:28:03","slug":"state-of-orissa-vs-shr-b-k-routray-on-12-january-1999","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/state-of-orissa-vs-shr-b-k-routray-on-12-january-1999","title":{"rendered":"State Of Orissa vs Shr. B.K.Routray on 12 January, 1999"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">State Of Orissa vs Shr. B.K.Routray on 12 January, 1999<\/div>\n<div class=\"doc_bench\">Bench: Sujata V. Manohar, R.C. Lahoti.<\/div>\n<pre>           PETITIONER:\nSTATE OF ORISSA\n\n\tVs.\n\nRESPONDENT:\nSHR. B.K.ROUTRAY\n\nDATE OF JUDGMENT:\t12\/01\/1999\n\nBENCH:\nSujata V.  Manohar, R.C.  Lahoti.\n\n\n\n\nJUDGMENT:\n<\/pre>\n<p> D E R<br \/>\n\tThe only question which\t has  been  raised  in\tthis<br \/>\nappeal\tpertains  to the award of interest by the Arbitrator<br \/>\nfor the pre-reference period.  The pre-refcrence period,  in<br \/>\nthe present  case,  is\tfrom  31.3.1977\t to 20.3.1980.\tThis<br \/>\nentire period is prior to coining into force of the interest<br \/>\nAct, 1978.  The interest Act, 1978 came\t into  force  during<br \/>\nthe  pendency  of  the\treference  and\tthe award is made on<br \/>\n12.10.1982 when the Interest Act, 1978 was in force.\n<\/p>\n<p>\tThe short question  is\twhether\t the  Arbitrator  in<br \/>\n1982,  could  have  awarded  interest  for the pre-reference<br \/>\nperiod in view of the provisions of the Interest Act,  1978,<br \/>\nalthough  the  entire  pre-reference  period is prior to the<br \/>\ncoming into force of the Interest Act, 1978.\n<\/p>\n<p>\tIn this connection, our attention has been drawn  to<br \/>\nthe   decision\t of  this  Court  in  <a href=\"\/doc\/1049606\/\">State  of\t Orissa\t vs.<br \/>\nB.N.Agarwalla<\/a> reported in (1997) 2 SCO 469.    In  paragraph<br \/>\n18,  this  Court  has held that interest cannot be given for<br \/>\nthe period prior to the coming into force  of  the  Interest<br \/>\nAct, 1973.    This  Court has also held that the decision in<br \/>\nthe case of <a href=\"\/doc\/1121664\/\">Executive Engineer (Irrigation)  vs.    Abhaduta<br \/>\nJena<\/a> reported in (1938) 1 SCO 418 has not been over-ruled in<br \/>\nso  far\t as  it\t deals\twith  interest for the pre-reference<br \/>\nperiod.\t This Court has upheld the view\t taken\tin  Abhaduta<br \/>\nJena&#8217;s\tcase  to the effect that in respect of pre-reference<br \/>\nperiod, interest cannot be awarded in respect of the  period<br \/>\nnot covered  by\t the  Interest Act, 1978.  Our attention was<br \/>\nalso drawn to a decision in the case of <a href=\"\/doc\/1165409\/\">State of Orissa\t vs.<br \/>\nNiranian  Swain<\/a> reported in (1989) 4 SCC 269 where also this<br \/>\nCourt said that where  reference  to  arbitration  was\tmade<br \/>\nprior  to  the\tcommencement  of  the  Interest\t Act,  1978,<br \/>\nArbitrator is not empowered to grant interest for the period<br \/>\nupto the date of submission of claim to arbitration.\n<\/p>\n<p>\tIn this connection, we would also like to  refer  to<br \/>\nSection\t 6(2)  of  the\tInterest Act, 1978 which provides as<br \/>\nfollows:\n<\/p>\n<p>\tSection\t\t\t6(1) &#8230;&#8230;&#8230;&#8230;&#8230;..<\/p>\n<p>\tSection 6(2?  :\t The  provisions  of  this<br \/>\n\tAct  shall  not apply to any suit or other<br \/>\n\tlegal\tproceeding    pending\t at    the<br \/>\n\tcommencement   of   this   Act\t and   the<br \/>\n\tprovisions  of\t the   corresponding   law<br \/>\n\tapplicable    immediately    before   such<br \/>\n\tcommencement  shall  notwithstanding   the<br \/>\n\trepeal\tof  such  law  by sub-section (1),<br \/>\n\tcontinue to apply to such  suit\t or  other<br \/>\n\tlegal proceeding.\n<\/p>\n<p>\tThis   section\t also\tclearly\t provides  that\t the<br \/>\nprovisions of the Interest Act, 1978 shall not apply to\t any<br \/>\nlegal  proceeding  pending  at\tthe commencement of the said<br \/>\nAct.  Since the definition of  &#8220;Court&#8221;\tunder  Section\t2(a)<br \/>\nincludes  a  Tribunal  or Arbitrator, the proceedings before<br \/>\nthe Arbitrator would also be covered by the expression legal<br \/>\nproceedings in Section 6(2).  Therefore interest  Act,\t1978<br \/>\ndoes not apply to pending arbitration proceedings.\n<\/p>\n<p>\tIn  the\t premises, the present appeal is allowed and<br \/>\nthe award of interest for the pre-reference period,  namely,<br \/>\n31.3.1977 to  20.3.1.980  is  disallowed.  The award and the<br \/>\ndecree are modified accordingly to this effect,<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India State Of Orissa vs Shr. B.K.Routray on 12 January, 1999 Bench: Sujata V. Manohar, R.C. Lahoti. PETITIONER: STATE OF ORISSA Vs. RESPONDENT: SHR. B.K.ROUTRAY DATE OF JUDGMENT: 12\/01\/1999 BENCH: Sujata V. Manohar, R.C. Lahoti. JUDGMENT: D E R The only question which has been raised in this appeal pertains to the [&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":[30],"tags":[],"class_list":["post-179401","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>State Of Orissa vs Shr. 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