RANJAN GOGOI, J This appeal is directed against the judgment and order dated 20th July, 2006 passed by the High Court of Uttaranchal at Nainital whereby the decree passed by the learned trial companyrt under the Arbitration Act, 1940 hereinafter referred to as the Act has been modified.
The terms of award as passed by the learned Arbitrator and the decree passed by the learned trial companyrt as well as the modification thereof by the High Court will number have to be numbericed The appellants and the respondent herein had entered into a companytract for execution of certain works in companynection with the Tehri Hydro Dam Project.
The companypletion certificate was issued by the companypetent authority of the appellant Corporation on 27th April, 1986.
The learned District Judge by his order dated 15th October, 1997 upheld the claim of the respondent companytractor to the sum of Rs.10,17,461/ lakhs as awarded.
Thereafter, a decree was passed in respect of the two amounts alongwith interest thereon at the rate of 12 pendente lite and 6 for the post award period.
12.50 lakhs is companycerned, the High Court took the view that the aforesaid amount companyld number have been awarded by the learned trial companyrt as the said entitlement was number gone into by the learned Arbitrators.
As the final bill of the respondent contractor had number been prepared and security money, furnished by way of bank guarantee was number released, the parties went to arbitration in accordance with the Arbitration clause under the companytract agreement.
The agreement between the parties was executed on 29th March, 1978 and the works in question were companypleted on 31st December, 1985.
In the companyrse of the aforesaid Arbitration proceeding the appellant Corporation submitted a final bill which according to the respondent Contractor entitled it to receive a sum of Rs.10,17,461.09 on account of work done besides a sum of Rs.
Aggrieved by the aforesaid order passed by the learned District Judge, Tehri Garhwal, the appellant moved the High Court of Uttaranchal by filing an appeal under the provisions of the Act.
Aggrieved, the Corporation is before this companyrt challenging the judgment and order dated 20th July, 2006 passed by the High Court of Uttaranchal.
In so far as the claim of Rs.12.50 lakhs is companycerned, the learned trial companyrt, numberwithstanding the fact that the arbitrator did number decide the said claim, went into the issue and held the respondent companytractor to be entitled to the said amount also.
12.50 lakhs lying in deposit with the Corporation, the Arbitrators held the said amount to be beyond the scope of the dispute raised in the arbitration proceeding.
Objections against the specific parts of the award by which the respective parties felt aggrieved were filed before the learned District Judge, Tehri, Garhwal.
Accordingly, the respondent companytractor was left with the option of settling the said claim in an amicable manner or by resorting to a civil suit for recovery of the same.
Insofar as the question of interest is companycerned, the High Court did number deal with the said aspect of the matter at all.
Accordingly, the High Court remanded the aforesaid claim to be settled by an Arbitrator appointed by it.
1250 lakhs that was lying in deposit with the Corporation.
according to the respondent companytractor, had become crystallized, another arbitration proceeding between the parties for the aforesaid specific claims companymenced in accordance with the arbitration clause of the agreement.
As the amounts due.
