Bombay High Court
Wcl,Thr Its Chairman Cum M.D vs M/S Prithipal Singh & Co on 12 March, 2018
Author: R.K. Deshpande
Bench: R.K. Deshpande
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR.
Writ Petition No. 4041/2008
Petitioners:- 1. Western Coalfields Limited,
A Subsidiary of Coal India
Limited, A Government of India
Enterprise, having one of it's Area
Office at Jaripatka, Nagpur
represented through it's
Chairman Cum Managing
Director, Coal Estate, Civil Lines,
Nagpur.
2. The General Manager (Civil),
Western Coalfields Limited, Coal
Estate, Civil Lines, Nagpur.
VERSUS
Respondent:- M/s Prithipal Singh and
Company through its Managing
Director, 65, Dharampeth
Extension, Nagpur.
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Shri Anil Kumar, Advocate for the petitioner.
Shri Rohit Joshi, Advocate for respondent.
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CORAM : R.K. DESHPANDE,J.
DATE : 12.03.2018.
ORAL JUDGMENT:-
Rule made returnable forthwith.
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2. Heard finally by consent of the learned counsel appearing for the parties.
3. The challenge in this petition is to the order dated 6 th March, 2008 passed by the learned Principal District Judge, Nagpur in Regular Darkhast No. 55/2007 arising out of an arbitral award, imposing interest @ 18% per annum from 10.04.2002 to 08.02.2007 i.e. the date on which, the actual payment of the principal amount was made.
4. Shri Anil Kumar, the learned counsel appearing for the petitioners has invited my attention to the contents of award. The Arbitrator has held that the current rate of interest has been defined under Section 2(b) of the Interest Act, 1978. The arbitration proceedings were started in January, 2000 and during this period, there has been sharp decline of the rate of interest paid on different classes of deposits of Scheduled Bank. Accordingly, simple interest @ 11% per annum may be considered as reasonable. The award further states that loss of profit due to forced closer of contract has been decided in this award and ::: Uploaded on - 16/03/2018 ::: Downloaded on - 17/03/2018 01:37:20 ::: 216JgWP 4041.08.odt 3/3 hence, it will carry interest, if any, beyond the date of award to actual date of payment.
5. The award does not specify the rate at which the interest shall become changeable after the date of passing award that is 10.04.2002, till the actual payment. Since the award was silent on post award interest, the learned Principal District Judge has awarded the rate of interest at 18% per annum in terms of Section 31(7) of the Arbitration and Conciliation Act. It is not possible to accept the contention of Shri Anil Kumar for the petitioners, to read that the Arbitrator has awarded the interest @ 11% per annum, beyond the date of award to the actual date of payment.
6. In view of above, there is no substance in this petition. The petition is dismissed.
JUDGE Gohane ::: Uploaded on - 16/03/2018 ::: Downloaded on - 17/03/2018 01:37:20 :::