STATE GOVERNMENT OF ORISSA Vs. RAGHUNATH NAYAK

JUDGEMENT

(1.) THE State Ciovernment has filed this appeal against the judgment and decree of the learned Subordinate Judge, Bhubaneswar in O. S. No. 2 of 1982-I accepting the Arbitrator's award and making it a rule of the Court.

(2.) THE respondent who is a Contractor was entrusted with the work of "Improvement to Earth Dam of Derjang Irrigation Project (Providing graded Filter)" by the appellant under agreement No. 42 F-2 of 1976-77. As disputes arose between the parties, the Superintending Engineer, Western irrigation Circle, Bhawanipatna was appointed as Arbitrator to decide the disputes according to Clause 23 of the F-2 contract. After considering the claim of the respondent and the counter-claim of the appellant the learned Arbitrator gave an award in favour of the respondent for a sum of Rs. 3,05,000/- including Rs. 6,600/- towards refund of security deposit along with future interest at the rate of 6 per cent per annum from the date of award to the dare of the decree or the date of payment whichever would be earlier. THE appellant challenged the said award under Sections 30 and 33 of the Arbitration Act mainly on the grounds that a sum of Rs. 1,79,370/- granted by the learned Arbitrator in respect of item No. 7 was illegal as it was contrary to the agreement between the parties and that the award of interest by the learned Arbitrator was wholly without jurisdiction. THE leaned Subordinate Judge decided both the points against the appellant.