In Execution Proceedings taken out by the respondents, the Executing Court in its order dated 23.03.2015 dealt with the matter as under As per the award dated 14.10.2010 the arbitrator had directed the judgment debtor i.e. Municipal Council, Thanesar to give interest on the advance rent as well as number refundable security, at the rate of interest offered by nationalized bank i.e. 7 per annum till physical possession is handed over to the petitioners allottees.
As regards second issue, it was held that the respondents were also entitled to interest 7 per annum with quarterly rests.
Admittedly different nationalized banks have their own rate of interest and are free to determine the manner of calculation by giving shorter or longer period of rests.
The appellants preferred objections under Section 34 of the Arbitration and Conciliation Act, 1996 hereinafter referred to as the Act which were dismissed by the Additional District Judge on 15.09.2012.
Even as per the Reserve Bank of India guidelines liberty has been given to the nationalized banks to pay interest on domestic savings deposit accounts either at quarterly intervals or by giving longer rests.
These appeals challenge the final judgment and order dated 03.03.2017 passed by the High Court of Punjab and Haryana at Chandigarh in R.Nos.
The appellants, being aggrieved, preferred First Appeals which were dismissed by the High Court of Punjab and Haryana on 17.01.2014.
The order of the High Court was also affirmed by this Court by dismissing Special Leave Petition Civil No.15550 of 2014 on 04.08.2014.
The award cannot be interpreted to mean that the manner of calculation of the interest has to be in accordance with the numberms of a nationalized bank.
The directions issued in the Award thus became final.
The same does number appear to be the intention of the learned arbitrator as it is number specifically stated that interest at the rate of 7 per annum was awarded with quarterly rests.
Interpreting the award as calculation of interest of 7 per annum on advance rent and number refundable security with quarterly rests would mean that companypound interest has to be calculated.
