RAITANI ENGINEERING WORKS PVT LTD Vs. UNION OF INDIA
HIGH COURT OF GAUHATI
Raitani Engineering Works Pvt Ltd
UNION OF INDIA
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Manojit Bhuyan, J. -
(1.) Heard Mr. R. Hussain, learned counsel for the appellant as well as Mr. G. Goswami, learned counsel representing the respondent.
(2.) Dispute between the appellant and the respondent was settled by the Arbitral Award dated 08.10.2002 under the provisions of the Arbitration and Conciliation Act, 1996 (for short, "1996 Act"). The said arbitration arose out of a contract agreement dated 23.03.1993 between the parties. In the present appeal we are concerned with the Award passed in Claim No.12 of the appellant whereby the Arbitrator awarded simple interest of 12% on the award of Rs. 3,73,137/-, which are the undisputed Claim Nos.3 and 4. Interest was levied from the date of closure of contract till date of payment. The undisputed Claim No.3 pertained to refund of Rs. 3,03,257/- by way of security and the undisputed claim no.4 pertained to the final bill amounting to Rs. 69,880/-.
(3.) The respondent Railway authorities preferred Misc(Arb) Case No.26/2003 challenging the arbitral award in respect of the award on loss of profit (Claim No.9) and the award of interest (Claim No.12). The said case was disposed of by the Addl. District Judge, Kamrup, Guwahati on 07.11.2005 without interfering with the award made on loss of profit but interfering with the award of interest in Claim No.12. Interference was made primarily on the ground that Clause 16(3) of the General Conditions of Contract prohibited grant of interest and, therefore, the Arbitrator did not have jurisdiction to grant interest in favour of the appellant. Aggrieved, the present appeal is laid.;
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