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TMI Blog2004 (8) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... stance in the plea relating to computation of the amounts receivable by the claimant. As rightly submitted, there was nothing on record to show that the claimant had withdrawn the amount which was deposited with the Subordinate Court, Trivandrum. Similarly, a sum of Rs. 47,000 has been adjusted more than once. Necessary adjustment in this regard has to be made. So far as the plea relating to 15 per cent rate of interest is concerned, it has to be noted that this Court directed that in case appeal is allowed, State would be entitled to interest at the rate of 15 per cent. That situation has not come. It would, therefore, be proper to apply 9 per cent rate of interest on the sum of Rs. 5,75,000. - CIVIL APPEAL NOS. 2078 OF 1984, 362 OF 1988 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts and machines were supplied, they could not be installed because of non-construction of the building to house them. As time passed, dispute arose between the parties and the matter was referred to arbitrators in terms of clause 15 of the agreement. There were two arbitrators who passed an award on 2-11-1978. The amount awarded by the arbitrators was Rs. 5,05,500. Soon after the award was passed, the State Government cancelled the contract and the same was terminated w.e.f. 17-11-1978. Claimant questioned the cancellation and raised the claims. In view of the cancellation of the contract the claimant referred the matters to arbitration and nominated the arbitrator under section 9 of the Arbitration Act, 1940 (in short the Act ). Notice w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Arbitrator has held, after consideration of the claimant s claim and counter-claim of the State, that claimant is liable to pay to the State a sum of Rs. 28,12,554 with interest at the rate of 15 per cent from the date of award i.e., 11-12-2002 till payment or deposit. The claimant was also directed to pay Rs. 25,666 by way of Arbitrators remuneration. The Arbitrator has held that out of the agreed amount of consideration stipulated in the contract, i.e., Rs. 9,40,000, claimant had received for the material supplied Rs. 6,75,780 as 80 per cent of the value and sales tax. The cost of material that was actually supplied was Rs. 8,40,730 leaving balance of Rs. 99,270 which form cost of labour, service and profit element. It was held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fixed at 9 per cent. Together with interest, the amount was fixed at Rs. 21,29,350 and with interest at the rate of 15 per cent, it was held that the State was entitled to receive Rs. 28,12,554 from the claimant. 15 per cent interest was also stipulated keeping in view the order passed by this Court. 5. Learned counsel appearing for the claimant submitted that the award of the arbitrator is liable to be vacated on the following grounds: (1)Arbitrator disregarded fundamental terms of contract and exceeded his jurisdiction. (2)Arbitrator misdirected himself in law in the sense that he neglected to look into the terms of contract. (3)Interest which was to be paid to the claimant was to be fixed on the basis of "The Interest On Delaye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be noticed that the arbitrator has given a very well-reasoned and detailed award. It could not be shown as to in what way the fundamental terms of the contract were disregarded. The arbitrator has referred to various clauses of the contract and the effect thereof. The findings are in no way perverse or unreasonable. We do not find substance in the plea of learned counsel for the claimant that the award suffered from any infirmity. So far as applicability of the Interest On Delayed Payments Act is concerned, it appears that before the arbitrator no claim in that regard was made. In order to attract the provisions of the said Act, the factual aspect like the prevailing bank rate of interest were to be brought on record. This has not been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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