KANHAI ENGINEERING TOWERS PVT LTD Vs. TELECOMMUNICATIONS CONSULTANTS INDIA LTD
HIGH COURT OF DELHI
KANHAI ENGINEERING (TOWERS)PVT.LTD.
TELECOMMUNICATIONS CONSULTANTS INDIA LTD.
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VIPIN SANGHI, J. -
(1.) The present Execution Petition arisen from an Arbitration Award dated 06.07.2001 passed by the Sole Arbitrator Shri A. K. Duggal in Arbitration between M/s Kanhai Engineering (Towers) Pvt. Ltd." (hereinafter referred to as the Decree Holder) and M/s. Telecommunication Consultants India Pvt. Ltd. (hereinafter referred to as the Judgment Debtor). The learned arbitrator, inter alia, awarded the Decree Holder interest as per Clause 5.1.1. of the Agreement between the parties. The objections filed under Section 34 of the Arbitration and Conciliation Act, 1996 in O.M.P. No. 302/2001 came to be dismissed and the award was upheld vide order dated 09.03.2006 by this Court. The Award was modified to the extent that interest was granted under the provisions of "The Interest on Delayed Payments to Small Scale Industrial and Ancillary Undertakings Act, 1993" (hereinafter referred to as the Act).
(2.) The Decree Holder while computing the amount due, calculated the same by adding compound interest with monthly rest at a fixed rate of 23% and arrived at a sum of Rs.45,67,163.00 (Forty five lakhs sixty seven thousands one hundred sixty three only). After deducting the amount tendered by the Judgment Debtor, the claim of the Decree Holder is Rs.30,90,571.00 (Thirty lakhs ninety thousands five hundred seventy one only) calculated as mentioned herein above.
(3.) On the other hand, the Judgment Debtor calculated its liability under the decree by assuming the same principal liability, the same time frame for the computation of interest, and computed its liability with compound interest compounded monthly, but the rate of interest has been arrived on the basis of the floating rate of interest based on the lending rates of the banks from time to time. The Judgment Debtor has also added 5 per cent points to the floor rate of interest under Section 4 of the Act.;
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