2017 (8) TMI 1580 - SC - Indian Laws

Amount awarded with regard to escalation - reduction of interest - HELD THAT - The learned Arbitrator had awarded 12% interest, whereas the High Court has reduced it to 9%. As far as escalation is concerned, the learned Arbitrator had awarded ₹ 1,20,000/-. The High Court has set it aside - the reasoning ascribed by the High Court is absolutely justified and there is no reason to interfere. Reduction of interest - HELD THAT - There is no warrant for reduction of interest. Accordingly, the interest granted by the learned Arbitrator is restored. The appellant shall be entitled to 12% interest on the modified award of the High Court. The amount shall be paid to the appellant within three months hence. If any amount has already been paid, needless to say, the same shall be adjusted. Appeal allowed.

Summary

Issues:
1. Reduction of amount awarded for escalation by the Arbitrator.
2. Reduction of interest by the High Court.

Analysis:
1. The appellant raised concerns regarding the reduction of the amount awarded for escalation by the Arbitrator. The Arbitrator had awarded &8377; 1,20,000, but the High Court set it aside. The Supreme Court found the reasoning of the High Court justified and declined to interfere with the decision. The appellant's grievance on this issue was not upheld.

2. Regarding the reduction of interest, the Arbitrator had awarded 12% interest, which was reduced to 9% by the High Court. The Supreme Court disagreed with the reduction of interest and restored the interest granted by the Arbitrator. The appellant was deemed entitled to 12% interest on the modified award by the High Court. The Court directed the payment of the amount within three months, with adjustments for any amount already paid. The appeals were allowed on this issue, and no costs were awarded.

Additional Judgment:
In a separate order, the Supreme Court dismissed a special leave petition after finding no merit in it. The petition was accordingly dismissed. However, in another special leave petition, the Court granted leave and allowed the appeals in terms of the signed order.