D.Y.CHANDRACHUD, J. - (1.) An arbitral award was rendered on 31 December 1998 by a sole arbitrator under the Arbitration Act, 1940. By the award an amount of Rs. 30,73,916/- was awarded to Buildworth Pvt Ltd - the claimant in the proceedings together with future interest at 18 per cent per annum.
(2.) The arbitrator filed his award. Assam State Electricity Board, against whom the claim was awarded, filed its objections. On 22 December 2000 the Civil Judge, Senior Division, Kamrup made the award a Rule of the Court pursuant to the legislative regime which prevailed at the material time. An appeal was filed against the judgment of the Civil Judge. A Division Bench of the Gauhati High Court by its judgment dated 21 November 2006 upheld the award except for the award of interest by the arbitrator between 7 March 1986 and 31 December 1997. The High Court found no ground to interfere with the merits of the award on the claim for idling charges and escalation. However, the Division Bench opined that Section 29 of the Arbitration Act, 1940 did not confer jurisdiction on the arbitrator to award interest prior to the date of the reference.
(3.) Assam State Electricity Board as well as Buildworth Pvt Ltd are before this Court. The former seeks to impugn the correctness of the judgment of the Division Bench which found no reason to interfere with the award on merits. The latter has challenged that part of the order of the High Court by which the award of interest has been set aside. Leave was granted in the proceedings initiated by the Board under Article 136 on 15 January 2008. We grant leave in the Special Leave Petitions filed by the claimant and proceed to dispose of both sets of appeals.;