High CourtsSingle Bench(2018) 09 UK CK 0084

M/s Kohinoor Transporters vs State of Uttar Pradesh and others

Uttarakhand High Court · Decided on 25 September 2018

HON’BLE JUDGES
Sudhanshu Dhulia, J
RESULT
Dismissed
CASE NUMBER
Civil Revision No. 44 of 2015 & Civil Revision No. 45 of 2015

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Judgment

30 paragraphs · 602 words

Sudhanshu Dhulia, J.

1.

This Civil Revision arises out of proceedings under the Arbitration Act, 1940. A contract was executed between the revisionist and the respondent

State of U.P. for some construction work. Consequent to the dispute between the parties, the matter was referred for arbitration and an award was

given by the arbitrator on 20.07.1984 in favour of the revisionist, which became a rule of court on 30.08.1986. An appeal was filed against the said

order dated 30.08.1986, which was dismissed by a Division Bench of this Court vide order dated 15.12.2006.

2.

It may also be stated that the State of U.P. had also moved an application for setting aside the Award under Section 30/33 of the Act, which was

dismissed, though the amount of interest awarded was reduced from 12 % to 6%. Meanwhile, after the dismissal of the appeal by the High Court,

State of U.P. deposited an amount of Rs. 75,65,945/- (Rupees Seventy Five Lakh Sixty Five Thousand Nine Hundred Forty Five only), which

admittedly has been withdrawn by the contractor. Thereafter execution was filed before the court at Dehradun by the contractor/revisionist. Though

according to the revisionist, the aforesaid amount is only a part payment of the contract, the contention of the State of U.P, is that this is full and final

payment and there is no liability of the State of U.P. in the matter.

3.

The actual award dated 20.07.1984 which was passed by the sole arbitrator reads as under:

“19. AWARD

In the above the contractor is entitled to the award for the following:

1.

Rs. 18,62,000/- (Rs. Eighteen lacs and sixty two thousands only), over and above the amounts being paid at the agreement rate of Rs. 17.25 per

cubic meter on account of excavation of 2.0 lac cubic meter in the new work area (extended reach of the agreement).

2.

A total rate of Rs. 26.56p (Rs. Twenty Six= fifty paise) per cubic meter may be paid to the contractor for all future (beyond 21.11.82) excavations

in the new work are (extended reach of the agreement) upto the date of award.

Beyond the date of award the parties will be free to negotiate and settle this rate or do as they like.

3.

Interest at the rate of twelve percent per annum may be paid by the department to the contractor on the sums of money due to the contractor as

determined in (1) above for the period reckoning from the date of award to the date of actual payment.

Any other claim whether specifically made or not is rejected.â€​

4.

It is absolutely clear from the award that though the interest at the rate of 12 % was awarded by the learned Arbitrator (under powers given to it

under Section 29 of the Arbitration Act, 1940), but there is no ambiguity in the award that the interest was only regarding item no. 1 and there was no

interest on item no. 2. An application was filed by the revisionist for reviewing the order dated 02.07.2014 which was also dismissed by the executing

court vide order dated 29. 01.2015, holding that interest is liable to be given at the rate of 6% only for item no. 1. Hence, the present revision has been

filed by the revisionist challenging the order dated 02.07.2014.

5.

There is absolutely no anomaly in the order impugned. Moreover, this is for the executing Court to finally decide the issue within the parameters of

Section 47 of CPC, as the matter is still pending in execution.

6.

In view of the above, civil revision is hereby dismissed.