BOARD OF TRUSTEES FOR THE PORT OF CALCUTTA Vs. ENGINEERS DE SPACE AGE

JUDGEMENT

(1.) This appeal came up before a Bench of two learned Judges on 7-11-1994 when it passed the following order :

(2.) The short question which arises for consideration in this case and which was canvassed before us by Mr. Salve the learned senior counsel for the appellants was that the Arbitrator had awarded interest pendente lite notwithstanding the prohibition contained in the contract against the payment of interest on delayed payments. Clause 13 (g) of the contract was relied upon in this behalf and that clause reads as under :

(3.) A Constitution Bench of this Court in Secretary, Irrigation Department, Government of Orissa v. G. C. Roy, 1992 (1) SCC 508 : (1992 AIR SCW 389), was called upon to consider whether the decision of this Court in Executive Engineer (Irrigation), Balimela v. Abhaduta Jena, 1988 (2) SCC 418 : (AIR 1988 SC 1520), correctly laid down the Rule in regard to Arbitrator's power to grant interest pendente lite. Dealing with this question the Constitution Bench summed up the legal position in regard to grant of interest pendente lite in the following terms: