A.N. Jindal, J. - (1.) THIS petition is directed against the judgment and decree dated 28.11.2007 passed by the learned Additional District Judge, Chandigarh dismissing the appeal against the order dated 29.4.2006 passed by the Civil Judge (Jr. Division), Chandigarh.
(2.) THE main dispute which is the subject of controversy in this case is the awarding of interest. The factual background of the case is that the Respondent No. 1 -Petitioner before the trial court (herein referred as, 'the Respondent No. 1') entered into a contract with the Petitioner -Respondent No. 1 before the trial court (herein referred as, 'the Petitioner') for moulding and burning of bricks for the Petitioner. The Petitioner was to supply first grade coal to the Respondent No. 1 at fixed price and in that event Respondent No. 1 was to be paid an agreed sum for the bricks supplied by the Petitioner. The allegations are that the Petitioner supplied third grade washry instead of that of first grade coal without disclosing its quality and charged the price of first grade coal and paid the fixed price of the bricks as if the Petitioner had supplied first grade coal. After completion of the contract, dispute and differences arose on account of supply of third grade washry instead of first grade coal to the Respondent No. 1, which was referred to the Superintending Engineer of Chandigarh Housing Board, who announced the award, but it was not acceptable to the Respondent No. 1, then the Respondent No. 1 filed an objection petition and consequently, the award was set aside on 11.5.1989 with the directions for removal of the Arbitrator on account of misconduct on his part. The Petitioner filed an appeal which was also dismissed. Consequently, P.M. Sood was appointed as an arbitrator but the dispute still remained un -adjudicated before P.M. Sood which compelled the Respondent No. 1 to move another application for appointment of the fresh arbitrator. Ultimately, the Respondent No. 2 was appointed as an arbitrator who passed the award during the extended time i.e. on 18.8.2002.
(3.) THE Petitioner filed objection petition against the said award. The said objections were contested by the Respondent No. 1 and ultimately, the trial court after dismissing the objection petition filed by the Petitioner made the award dated 18.8.2002 as rule of the court and ordered that the Respondent No. 1 would be entitled to compound interest @ 12% per annum w.e.f. 1.7.1985 till realization.;