Case Note & Summary
The dispute arose from an arbitration award concerning a contractor engaged for work at Periyar Dam, Tamil Nadu. The respondent, E.R. Sundaram, was awarded a sum of Rs.2,22,54,301/- on 19.1.1998 due to interruptions caused by Kerala Forest Officials. The principal amount was reportedly paid, and the Execution Court mandated interest at 18% per annum from the date of the award until payment, while interest prior to the award was waived by the respondent's counsel. The appellant, the Superintending Engineer, indicated that an application to set aside the arbitration award was pending before the District Court. The Supreme Court directed that this application be resolved expeditiously. The appeal was disposed of without costs, and the respondent was permitted to file a petition for withdrawal of the interest amount in the Execution Court.
Headnote
A) Arbitration - Execution of Award - Payment of Interest - Arbitration and Conciliation Act, 1996, Section Not mentioned - The court directed the appellant to deposit interest at 18% per annum from the date of the award in the Execution Court, while waiving interest prior to the award as per the respondent's counsel. The pending application to set aside the arbitration award was to be disposed of by the District Court at an early date. Held that the execution of the award and interest payment were to proceed as directed (Paras 1-3).
Issue of Consideration
Whether the interest on the arbitration award should be paid and the status of the application to set aside the award.
Final Decision
The Supreme Court directed the appellant to deposit interest at 18% per annum from the date of the award in the Execution Court and permitted the respondent to file a petition for withdrawal of the same. The pending application to set aside the arbitration award was to be disposed of by the District Court at an early date.
Law Points
- Arbitration
- Execution of Award
- Interest on Award
