Mohinder Pal, J. - (1.) THIS is a dispute regarding interest on delayed payment between the Appellant -Board and the Respondent.
(2.) AS per facts of this case M/s Deekay Mechanical Works, Sangrur (Respondent herein) filed a suit for declaration against Punjab State Electricity Board (Appellant herein) in the Court of learned Additional Civil Judge (Senior Division), Patiala claiming compound interest as capital with monthly rests @ 5% above the floor rate for comparable lending as per Section 6 of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (hereinafter referred to as 'the Act'). During the pendency of the proceedings, the Appellants filed an application under Section 8 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Arbitration Act') and the learned Additional Civil Judge (Senior Division), Patiala vide order dated 8.4.2002 referred the matter to an Arbitrator to be appointed by the Appellant -Board in accordance with the terms and conditions of the purchase order and agreement executed between the parties. In pursuance to the purchase order dated 8.4.2002 the Appellant -Board appointed Engineer N.K. Arora, General Manager, GGSSTP, PSEB, Ropar as the sole Arbitrator which passed an award dated 1.10.2006 in favour of the Appellant -Board. The Respondent herein moved an application under Section 34 of the Arbitration Act in the Court of learned District Judge, Patiala against the award passed by the sole Arbitrator. The learned District Judge, Patiala accepted the said application and set aside the award passed by the Arbitrator vide order dated 24.7.2008. The Appellant -Board preferred the present appeal against the order passed by the learned District Judge, Patiala which is now under challenge before me.
(3.) I have heard Mr. Sarjit Singh, Senior Advocate assisted by Ms. Shikha Sharma, Advocate appearing for the Appellant and Mr. Kanwalvir Singh Kang, Advocate appearing for Respondent No. 1.;