Supreme Court - Daily Orders
Prana Krushna Satapathy (D) Tr.Lrs. vs Union Of India on 7 June, 2022
Bench: M.R. Shah, Aniruddha Bose
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IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 9842-9843 OF 2013
PRANA KRUSHNA SATAPATHY (D) THR. LRS. Appellant(s)
VERSUS
UNION OF INDIA & ORS. Respondent(s)
O R D E R
The only issue involved in the present appeals is denial of interest for the pre-reference period by the learned Arbitrator.
It is not in dispute that the parties are governed by the General Conditions of Contract [GCC]. Clause 16(2) of the GCC reads as follows:-
“16(1) – Earnest Money & Security deposit:
xxx xxx (2) Interest on amounts: No interest will be payable upon the earnest money or the security deposit or amounts payable to the Contractor under the contract, but Government Securities deposited in terms of sub-clause (1) of this clause will be repayable with interest accrued thereon.
Interest on the said Government Security will be drawn by the Railway Administration and credited to the Contractor and the Contractor shall not be entitled to claim any other sum by way of interest or profit on the said Security Deposit than the amount actually drawn by the Railway Administration from the Government.” In that view of the matter and when under the contract itself, Signature Not Verified the Digitally signed by R Natarajan Date: 2022.06.08 pre-reference interest was provided only on the government 16:01:39 IST Reason:
securities deposited in terms of sub-clause (1) and it specifically provides that no interest will be payable upon the earnest money or 2 the security deposit or the amounts payable to the Contractor under the contract, the appellant is rightly denied the pre-reference interest. The High Court has given cogent reasons while affirming the denial of pre-reference interest. We are in complete agreement with the view taken by the High Court.
Accordingly, the Appeals stand dismissed.
.......................... J. (M.R. SHAH) .......................... J. (ANIRUDDHA BOSE) New Delhi;
June 07, 2022.
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ITEM NO.104 COURT NO.2 SECTION XI-A
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Civil Appeal No(s). 9842-9843/2013
PRANA KRUSHNA SATAPATHY (D) THR.LRS. Appellant(s)
VERSUS
UNION OF INDIA & ORS. Respondent(s)
(WITH DEFECTIVE DIARY NO. 56646 OF 2015 (APPLICATION FOR DIRECTION) FILED BY MR. CHANDRA BHUSHAN PRASAD, ADV. ) Date : 07-06-2022 These matters were called on for hearing today.
CORAM : HON'BLE MR. JUSTICE M.R. SHAH HON'BLE MR. JUSTICE ANIRUDDHA BOSE (VACATION BENCH) For Appellant(s) Mr. Azim H. Laskar, Adv.
Mr. Chandra Bhushan Prasad, AOR Ms. Ritu Rajkumari, Adv.
Ms. Astha, Adv.
For Respondent(s) Mr. V.V.V. Pattabhiram, Adv.
Mr. Rajan Kr. Chourasia, Adv.
Ms. Vaishali Verma, Adv.
Mr. Amrish Kumar, AOR Mrs. Anil Katiyar, AOR UPON hearing the counsel the Court made the following O R D E R The Appeals stand dismissed in terms of the signed order.
Pending applications, if any, stand disposed of.
(R. NATARAJAN) (NISHA TRIPATHI) ASTT. REGISTRAR-cum-PS ASSISTANT REGISTRAR (Signed order is placed on the file)