AI Structured Summary
Not yet generated for this judgment
Judgment
L.N. Mittal, J.—The petitioner-contractor (a cooperative society) has invoked the jurisdiction of this Court under Article 227 of the
Constitution of India by filing this revision petition to assail order dated 28.02.2012 Annexure P-24 passed by the executing Court. Dispute
between the petitioner-contractor and respondent-Executing Engineer was referred to Arbitrator, who gave award dated 05.04.2003 Annexure
P-1 inter alia awarding that the contractor is at liberty to lift the sub-standard stone (137.49 Cubic Meters) from the work site being smaller size
stone, if he so likes, at his own costs, after informing the Executing Engineer.
Objections against the said award preferred by the respondent were dismissed by the District Court vide order dated 03.12.2005 and FAO
No. 1235 of 2006 filed by respondent in this Court was dismissed by this Court on 30.03.2006.
The petitioner has been writing various letters starting from letter dated 27.06.2003 Annexure P-2 for permitting it to lift the stone. However, the
respondent did not allow the petitioner to lift the stone. Vide letter dated 04.07.2003 Annexure P-3, the respondent informed the petitioner not to
lift the stone from the site because status quo order had been passed by District Judge. Ultimately the petitioner filed execution petition on
02.09.20009. Local Commissioner was appointed in the execution petition. Local Commissioner reported that the stone in question had been used
by respondent-judgment debtor (JD). Consequently, the executing Court vide order dated 16.12.2011 Annexure P-23, held that petitioner-decree
holder (DH) is entitled to receive the value of the said stone from respondent-JD. The parties were asked to lead evidence regarding value of the
said stone. After the parties led their evidence, learned executing Court vide order dated 28.02.2012 Annexure P-24 determined the value of the
said stone to be Rs. 3,50,000/- and accordingly directed the respondent-JD to pay the said amount to the petitioner-DH.
Grievance of the petitioner-DH in the instant revision petition is that the petitioner is also entitled to interest on the aforesaid amount of Rs.
3,50,000/- @ 18% per annum w.e.f. 27.05.2001 till date of recovery.
I have heard learned counsel for the parties and perused the case file.
Counsel for the petitioner contended that since pursuant to award of the Arbitrator, the petitioner was not allowed to lift the stone, the petitioner
is entitled to interest on the value of the stone payable by the respondent-JD to the petitioner-DH.
On the other hand, counsel for respondent-JD contended that the petitioner is not entitled to any interest as rightly held by the executing Court.
It was also submitted that the respondent is also contemplating to challenge order dated 28.02.2012 Annexure P-24 of the executing Court
regarding determination of the value of the stone.
I have carefully considered the matter. The instant order shall have no bearing on the revision petition, if any, to be filed by respondent-JD to
challenge order Annexure P-24 regarding determination of value of the stone.
As regards entitlement of the petitioner to interest, the petitioner is certainly entitled to interest on the amount of Rs. 3,50,000/-because the
petitioner was deprived of the stone in question as well as value thereof. However, the question to be determined is as to since when and at what
rate the petitioner is entitled to interest? As noticed hereinbefore, objections preferred by respondent against the award were dismissed by the
District Judge on 03.12.2005 and first appeal was dismissed by this Court on 30.03.2006 and it was only thereafter that the award became
executable. However, even thereafter the petitioner did not file the execution petition immediately. The petitioner filed the execution petition almost
two and half years after appeal of respondent had been dismissed by this Court on 30.03.2006. Consequently, in my considered opinion, the
petitioner is entitled to interest since the date of filing of the execution petition and not for any period prior thereto.
As regards rate of interest, keeping in view the prevailing market rate of interest, the petitioner is held entitled to interest @ 9% per annum.
Accordingly, the instant revision petition is allowed partly. Impugned order Annexure P-24 passed by the executing Court is modified and the
petitioner is held entitled also to interest @ 9% per annum on the amount of Rs. 3,50,000/- w.e.f. 02.09.2009 date of filing of the execution
petition till payment of the said amount of Rs. 3,50,000/-, besides the amount of Rs. 3,50,000/- determined by the executing Court as cost of the
stone.