JUDGEMENT
GURUSHARAN SHARMA, J. -
(1.) HEARD the parties. In terms of Clause 24 of the Terms and Conditions of N.I.T. dated 14.12.1991, the dispute raised by the respondent -contractor of sand transportation contract for the years 1989 -
90 and 1990 -91 was referred to arbitration and the arbitrator gave award dated 2nd September, 1992, whereby for the years 1989 -90 and 1990 -91, escalation in the rate for sand transportation over the rate of the year 1988 - 89 was allowed, respectively to the extent of 7% and 17%. The
said award has been made Rule of the Court. I find no reason to interfere with the said part of the
award which has been made Rule of the Court.
(2.) IN the next part of the award, a lump -sum amount of Rs. 4,38,400/ - was calculated to be paid to the respondent -contractor on account of enhancement of rates and on the aforesaid awarded
amount future interest @ 13% per annum after three months of the award till the date of payment
was allowed. In my view the arbitrator went beyond the terms of reference. It is not in dispute that
under the terms of reference the arbitrator was merely required to consider and adjudicate upon
the rates of transportation, lawfully payable to the respondent -contractor and it was not within the
jurisdiction of the arbitrator to award any lump -sum amount after calculating on the enhanced rate
in respect of the quantum of sand said to have been supplied during the period in question.
In this regard reference may be made to a decision of this Court in M.A. No. 215 of 1993 (R) Bharat Coking Coal Limited v. Transport India and Ors. disposed of on 14th January, 1994. The
sand supplied by the respondent -contractor during the period in question is a matter of record and
there is no dispute regarding its quantum. Now it is for the appellant - company to calculate the
amount payable to the respondent -contractor, on the basis of enhanced rate mentioned in the
impugned award and pay the same. It appears that pursuant to the award impugned, which was
made Rule of the Court, the appellant -Company has not made payment of the said amount to the
respondent and, therefore, in my view the appellant -Company is liable to pay interest @ 9 per cent
per annum, from the date of the award, on the total amount payable to the respondent, till the
date of payment. All the amounts payable to the respondent must be paid within three months.
This appeal is disposed of accordingly.;
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