- (1.) HEARD the counsel for the appellant.
(2.) THIS appeal under Section 39 of the Arbitration Act, 1940 is directed against the judgment and order dated 10.9.1965 passed by Subordinate Judge 1, Ranchi in Arbitration Title Suit No. 161/94 whereby, while making the award rule of the Court, the Court below set aside that part of the award by which 14% interest was awarded by the Arbitrator. It appears that there was some differences and dispute between the appellant and the respondent ''Electricity Board in respect of a contract and the matter was ultimately referred to arbitrator for adjudication of the claim of the appellant. The arbitrator published his award whereby some of the claims of the appellant was accepted and consequently the interest which was also one of the terms of the reference, was awarded at the rate of 14% p.a. from the side of the respondent -Board nor any one appeared in the case. The Court below, after hearing the appellant, accepted the award filed by the Arbitrator but the award of interest was set aside. The Court below awarded interest at the rate of 6% p.a. under Section 29 of the Arbitration Act, 1940 , from the date of the decree till the date of payment.
(3.) IT is well stated that the Arbitrator has jurisdiction to award interest even pen -dentelite but in the instant case the Arbitrator awarded interest at the rate of 14% from the date of the award till the date of payment. Admittedly no objection was filed to the said award by the respondent. In the impugned order no reason has been assigned by the Court below for setting aside the award with regard to interest and directing for payment of interest at the rate of 6% p.a. from the date of decree till the date of payment. However, in view of the devaluation of money and reduction in the rate of interest by the Reserve Bank of India, learned counsel for the appellant very fairly submitted that a reasonable rate of interest may be fixed which should be paid by the respondent - Board to the appellant.;