R.V. Raveendran J. - (1.) Leave granted. Heard the parties.
(2.) The appellants awarded a construction contract to the respondent. The work which had to be completed within 18 months from 18.3.1985, was actually completed on 30.11.1989. The delay led to claims by the contractor and counter-claims by the employer (appellants). The disputes were referred to a sole Arbitrator who made an award dated 22.06.2000. The Arbitral Tribunal rejected the counter claims of the appellants. It awarded in all Rs. 14,94,000/- with interest to the respondent-contractor. The operative portion of the award is extracted below: I award Rs. 14.94 lacs (Rupees Fourteen Lacs Ninety Four Thousands only) along with interest at the rate of 12% with effect from 19.12.1990 till the date of award in favour of M/s. S.L. Arora and Company, 5E-10, Bunglow Plot, N.I.T., Faridabad (Claimant) to be paid by the Haryana PWD B &R Branch Department (respondent). In case the total amount of award together with this interest is not paid within 30 days from the date of making this award, future interest shall be paid @ 18% per annum on the sums due to the claimant from the date of Award upto the actual date of payment.... (emphasis supplied)
(3.) The application filed by the appellants to set aside the said the award, under Section 34 of the Arbitration and Conciliation Act 1996 ('Act' for short), was rejected by the civil court. Thereafter, on 26.10.2004, the respondent levied execution against the appellants, to recover the following amount: (i) Principal amount : Rs. 14,94,000/- (ii) Interest at 12% per annum on Rs. 14,94,000/- from 19.12.1990 to 22. 6.2000 (date of the award) : Rs. 17,04,879/- (iii) Interest at 18% per annum on Rs. 14,94,000/- from 23.6.2000 to 23.10.2004 (date of execution petition) : Rs. 11,67,039/-. TOTAL : Rs. 43,65,918/- The appellants paid to the respondent, a sum of Rs. 44,59,587/- on 1.3.2005, which was made up Rs. 14,94,000/- plus interest thereon at the rate of 12% per annum from 19.12.1990 to 22.6.2000 plus interest at the rate of 18% per annum from 23.6.2000 to 28.2.2005. According to the appellants, the said payment was in full and final settlement, though full satisfaction of the decree was not entered. ;