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TMI Blog2019 (7) TMI 1989X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not have been 18%. It is submitted by Sri Tandon for the respondents that the statutory rate of interest should be 1 or 2 per cent higher or lower than the bank rate. While going through the record and the award it appears that while considering the claim of the contractor, the arbitrator was himself a engineer was taken pain to look into the amount which could be granted and which could be discarded - The contractor was subjected to filing of suit for appointment of arbitrator which was also vehemently opposed on the ground that it was a unregistered firm. It was only after intervention of the Court that arbitration proceedings continued. Though the arbitrator was appointed by concess objections were raised to contend that he had co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12.1991 (b) Tender received on - 31.12.1991 (c) Lowest tender accepted on - 27.2.1992 (d) Amount of lowest tender - Rs.5,53,420.00 (e) work Order No.1 issued on - 29.2.1992 (f) Work commenced on - 14.3.1992 (g) Original completion as per CA - 14.9.1992 (h) Amended date of completion - 13.8.1992 (i) Extention (Provisional) - 30.1.1993 (j) Extention - 15.4.1993 (k) Extention (Provisional) - 22.11.1993 (l) Cancellation of CA - 30.9.1994 4. While allowing the award, the arbitrator has awarded the said amount with 18% rate of interest. 5. The arbitrator's award was challenged and objections were raised by Union of India as per Section 34 of the Arbitration and Conciliation Act, 1936. The appellant herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the appellant herein and the decision of the Apex Court and this High Court in arbitral matter has also held that 9% rate of interest would be just and proper. 10. It is submitted that as far as certain items are concerned namely the amount of Rs.3 Lac granted under the head of grant of the new tender and no information to the contractor is concerned. It is proved that the contrator did not pay heed to the instructions of Union of India. Time and again he was granted time to complete the work but he did not. The question is what would Union of India do as it was its duty to complete the public utility work which it had undertaken and for long period of 6 years, the contractor did not work and, therefore, this amount was absolutel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Arbitrator. And that the bar to award interest on delayed payment by itself will not be readily inferred as express bar to award interest pendente lite by the Arbitral Tribunal, as ouster of power of the arbitrator has to be considered on various relevant aspects referred to in the decisions of this Court , it would be for the Division Bench to consider the case on merits. 13. Further, this Court considered an identical clause in the contract in the case of Ambica Constructions v. Union of India,(2017) 14 SCC 323 , wherein it observed that the Clause of the GCC did not bar the arbitrator from awarding interest pendente lite and affirmed the award passed by the arbitrator. The three Judge Bench of this Court held that the contention ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to filing of suit for appointment of arbitrator which was also vehemently opposed on the ground that it was a unregistered firm. It was only after intervention of the Court that arbitration proceedings continued. Though the arbitrator was appointed by concess objections were raised to contend that he had committed misconduct as he was a engineer with the State. The illustration for item -5 demonstrates that both the arbitrator and the Judge applied their legal acumen and marshaled the facts so well that certain part which was not to be granted in favour of the contractor, was rejected. Similar findings having been given for all items, I do not think that there is any scope for interference in the arbitral award as confirmed by the Court b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommodities Act, Central Government has power to regulate and control the prices at which an essential commodity may be bought or sold. Therefore, increase in prices of HSD being a petroleum product is pursuant to the exercise of powers given to the Central Government under Section 3 of the Essential Commodities Act and is therefore, on account of a change in law. The Tribunal has relied on the decisions of the Privy Counsel and Apex Court and also relied upon the affidavit of appellant filed before the Tribunal before the Award passed. The awarding of interest cannot be said to be in any manner, warranting any interference, however, the factum of interest, in our view may be considered, which in our view is on higher side looki ..... X X X X Extracts X X X X X X X X Extracts X X X X
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