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2018 DIGILAW 1526 (JHR)

Ram Parbesh Singh v. Bharat Coking Coal Ltd.

2018-07-11

SHREE CHANDRASHEKHAR

body2018
JUDGMENT Shree Chandrashekhar, J. - The petitioner - M/s. Ram Parbesh Singh, aggrieved of order dated 4.4.2011 by which the Executing Court has held that interest shall be payable from the date of decree and order dated 9.5.2011 by which the application for review of order dated 4.4.2011 has been dismissed, has approached this Court. 2. Briefly stated, in relation to a contract for transportation of sand from different river ghats for the year 1989-90 and 1990-91 when a dispute on rate of transportation arose, the matter was referred for arbitration. Award dated 6.8.1992 reads as under: "That an escalation in rate for sand transportation for the year 1989-90 and 199091 in the instant case over the rate of 1988-89 of 10 and 20 percent respectively is allowed. That the respondent i.e., M/s. Bharat Coking Coal Ltd., shall pay to the Claimant i.e.. M/s. Ram Prabesh Singh a quantified sum of Rs. 6,95,600/- (Rupees Six lakhs ninty five thousand and six hundred only) on account of enhancement of rate, interest charges and other claims. That the aforesaid awarded amount shall bear future interest @ 13% p.a. after 3 months from the date of the award till the date of payment. That each party shall bear their respective cost except the cost of stamp papers which shall be exclusively borne by the Claimant. Given this the 6th Day of August, 1992." 3. The petitioner filed an application on 7.1.2008 under section 15 of the Arbitration Act, 1940 for modification of the award on the premise that award for a sum of Rs. 6,95,600/-on account of enhancement of rate was not a matter referred for arbitration, and by an order dated 2.2.2008 passed in Title (Arbitration) Suit No. 147 of 1992 the award was modified to the aforesaid extent. Thereafter, on 22.4.2008 the modified award was made rule of the Court and decree was signed on 3.5.2008. In the execution proceeding, the respondent - M/s. BCCL filed an application on 10.12.2010 asserting that after deletion of the awarded amount interest is not payable to the decree-holder. A similar application was filed on 22.3.2011. The decree-holder resisted these applications by taking a stand that interest is payable in terms of the award which provides future interest @ 13% p.a. after 3 months from the date of award. A similar application was filed on 22.3.2011. The decree-holder resisted these applications by taking a stand that interest is payable in terms of the award which provides future interest @ 13% p.a. after 3 months from the date of award. By an order dated 4.4.2011 the Executing Court has held that the decree-holder is entitled for interest from 3.5.2008, that is, from the date of the decree. 4. A perusal of award dated 6.8.1992 would disclose that the claimant has claimed escalation in the rate of sand transportation @25% over and above the rate of 1988-89 for the year 1989-90 and @35% over and above the rate of 1989-90 for the year 199091. The learned Arbitrator has however awarded escalation @10% for the year 1989-90 and for the year 1990-91 @20%, and awarded a consolidated sum of Rs. 6,95,600/- on account of enhancement of rate, interest charge and other claims. This amount of Rs. 6,95,600/- is in fact the amount which was awarded to the claimant for whole of its claim. The learned Arbitrator has quantified the escalation in the rate for sand transportation @ 10% and 20% for the year 1989-90 and 1990-91 respectively, interest and other claims, to Rs. 6,95,600/- and it is not that this quantified amount was something beyond the dispute what was referred to the Arbitrator. However, on the application filed by the decree-holder for deleting this part of the award the judgment-debtor readily agreed and accordingly, the award was modified by deleting the quantified sum of Rs. 6,95,600/-. The award would further reflect that future interest @ 13% p.a. after 3 months from the date of award is payable on the aforesaid awarded amount, till it is paid, and it is not that 13% interest after 3 months from the date of the award shall accrue on the escalated rate for sand transportation. On payment of interest the award is clear and unambiguous. It provides future interest on the "awarded amount". It is not in dispute that the awarded amount was f 6,95,600/- and once this part of the award is deleted, interest @13% p.a. on the escalated rate of sand transportation is not payable from 3 months after the date of the award. It is not that the Executing Court has modified the award. It is not in dispute that the awarded amount was f 6,95,600/- and once this part of the award is deleted, interest @13% p.a. on the escalated rate of sand transportation is not payable from 3 months after the date of the award. It is not that the Executing Court has modified the award. May be, this part of the award - "that the aforesaid awarded amount shall bear future interest @13% p.a. after 3 months from the date of the award till the date of payment." - has remained intact, it is not that 13% interest shall accrue on the escalated rate for sand transportation. Evidently, interest on the escalated rate for sand transportation would accrue only from the date of decree and not from 3 months after the date of the award. 5. In the aforesaid facts, finding no infirmity in the impugned order dated 4.4.2011, I find that the application seeking review of this order has rightly been rejected by the Executing Court. 6. Finding no merit in the writ petition, it is dismissed.