Mohammad Dar Vs. State of J & K
& Ors.  Insc 6 (4 January 2008)
Mathur & P. Sathasivam
out of SLP (C) No. 16417 OF 2006) P. Sathasivam, J.
This appeal is directed against the order dated 01.09.2006 passed by the High
Court of Jammu and Kashmir at Sri Nagar in Civil Revision No. 47 of 2006
whereby the High Court dismissed the civil revision filed by the appellant
view of the limited issue i.e., interest payable by the respondents, there is
no need to traverse the entire factual matrix except relating to the issue in
According to the appellant, the executing Court has wrongly interpreted the
judgment passed by the High Court as well as the provisions of the Arbitration
Act and erroneously refused to release the interest on the Award/decretal
amount from the date of Award till passing of the decree.
is not in dispute that an Award came to be passed on 05.09.1995 which was made
a Rule of the Court and accordingly decree came to be passed on 30.04.1998.
is relevant to reproduce the Award of the Arbitrator in respect of the interest
which reads as under:
claimant shall be entitled to 10% S.I.P.A. beyond 10.11.1995 till payment is
made in full by the respondents of the full awarded amount. Respondent No.3
shall be liable to discharge and pay the final bill pending since 27.12.1993
with him failing which 18% P.A. simple interest shall be paid over and above
from 1.2.1994 till date of actual payment. Though there is little
confusion in the direction of the Arbitrator, it is presumed that the
Arbitrator has granted interest @ 10% (simple interest p.a.) from 10.11.1995
till payment is made in full by the respondents. The latter part of the said
direction shows that in case of default, the Award amount carries interest @
18% simple interest per annum from 01.02.1994 till date of actual payment.
30.04.1998, learned single Judge of the High Court disposed of Arbitration
Petition No. 171 of 1991 by passing the following order: In the totality
of the circumstances, I order that let award be made rule of the Court and the
amounts found due along with interest awarded by the Arbitrator be paid from
the date of decree with interest at 18% till final realization of the decretal
amount of the petition. Let decree be prepared accordingly.
Learned senior counsel appearing for the appellant, by drawing our attention to
the direction of the Arbitrator as well as the ultimate order passed by the
High Court, submitted that in view of default in payment of the amount within
the stipulated time, the appellant is entitled interest @ 18% p.a. from the
date of the Award and not from the date of the decree. In the light of the
controversy, we verified the direction of the Arbitrator and the order passed
by the High Court both in the Arbitration and Revision Petition. On perusal of
the same and of the fact that the respondents are none other than the State
Government, we agree with the order of the High Court dated 30.04.1998 passed
in Arbitration Petition No. 171 of 1991 and hold that the claimant is entitled
to interest @ 18% p.a. for the award amount from the date of the decree till
realization. To this extent, we clarify the position. The Civil Appeal is
disposed of on the above terms. No costs.