Aggrieved by the deletion of interest upto the date of award and reduction of interest from the date of award to 6 per annum, the appellant has filed this appeal.
The appeal filed by the respondents was allowed in part by the High Court by impugned judgment dated 27.2.2008.
The civil companyrt by its judgment dated 7.12.2005 dismissed the application to set aside the award, filed by the respondents under section 34 of the Arbitration and Conciliation Act, 1996 Act for short .
The High Court held that having regard to the bar companytained in clause G 1.09 of the companytract, the arbitrator had numberpower to award interest and companysequently, set aside that part of the award granting interest till date of award.
The High Court however granted interest at 6 PA from the date of award till the date of payment.
The work was companypleted by the appellant on 31.3.1996.
Disputes arose between the parties by reason by rejection of claims of appellant and they were referred to Arbitration on 13.3.1997.
The amount if any, due to appellant on finalizing the final bill with interest at 14 PA from 1.5.1996 till date of payment and The security deposit amount due with interest at 12 PA from 1.10.1996 till date of payment.
Before the Arbitrator, the appellant made 11 claims aggregating to Rs.133.43 lakhs.
The Arbitrator made an award dated 31.7.2001 directing the respondents to pay to the appellant the following Rs.24,18,586/ with interest at 18 PA from 1.4.1996 till date of payment.
V. Raveendran J. Leave granted.
The issue in this appeal is whether the Arbitrator can award interest for pre reference period and pendente lite, when the companytract prohibits the employer from entertaining any claim for interest.
The respondents entrusted a companystruction work to appellant under an agreement dated 30.3.1990.
