High Court of Gujarat Dismisses Revision by Union of India in Arbitration Award Execution — Interest Calculation Upheld. Executing Court Cannot Go Behind Decree; Order Directing Deposit of Outstanding Amount with Interest at 15% Per Annum Sustained.

High Court: Gujarat High Court
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Case Note & Summary

The Union of India filed a revision under Section 115 of the Code of Civil Procedure, 1908 against an order dated 02.05.2003 passed by the Judge, Court No.11, City Civil Court, Ahmedabad in Execution Petition No.6 of 2002. The executing court directed the Union of India to deposit the outstanding decreetal amount after deducting amounts already deposited, with interest at 15% per annum till 15.07.2003. The dispute arose from a contract awarded to the respondent (judgment creditor) which was left incomplete. The contractor had partly executed the contract worth Rs.1,36,418/- but had recovered Rs.7,60,334/- plus Rs.1,75,000/-. The matter went to arbitration, and the arbitrator passed an award dated 28.04.1995 awarding Rs.2,47,556/- under various heads, including interest at 24% per annum for the post-award period. The award was made a rule of court. In execution, the judgment debtor deposited Rs.1,75,000/-. The executing court calculated the outstanding amount and directed deposit with interest at 15% per annum. The Union of India challenged this order, arguing that the executing court had no jurisdiction to calculate interest and that the revision was maintainable. The High Court held that the executing court cannot go behind the decree and must execute it as per its terms. The court found that the executing court had correctly calculated the interest and that the revision was without merit. The revision was dismissed with no order as to costs.

Headnote

A) Civil Procedure - Execution of Decree - Executing Court's Jurisdiction - Section 115, Code of Civil Procedure, 1908 - The executing court cannot go behind the decree and must execute the decree as per its terms. The court upheld the order directing deposit of outstanding amount with interest at 15% per annum as per the award. (Paras 1-10)

B) Arbitration - Interest - Award - Interest Rate - The arbitrator awarded interest at 24% per annum for post-award period. The executing court reduced it to 15% per annum, which was not challenged. The court held that the executing court correctly calculated interest. (Paras 3.2-10)

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Issue of Consideration

Whether the executing court erred in directing deposit of outstanding decreetal amount with interest at 15% per annum, and whether the revision under Section 115 CPC is maintainable against such order.

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Final Decision

The High Court dismissed the revision application, upholding the order of the executing court. No order as to costs.

Law Points

  • Executing court cannot go behind decree
  • executing court must execute decree as per its terms
  • interest calculation in execution proceedings
  • scope of revision under Section 115 CPC
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Case Details

2026 LawText (GUJ) (02) 361

R/Civil Revision Application No. 137 of 2004

2026-02-25

J. C. Doshi

Mr. Mukesh A Patel for Applicant(s) No. 1

Union of India - W/Rly. Admn. Thro' General Manager

H K Dhruv & Ors.

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Nature of Litigation

Civil revision against order in execution petition

Remedy Sought

Union of India sought to set aside the executing court's order directing deposit of outstanding decreetal amount with interest

Filing Reason

Union of India challenged the calculation of interest and the direction to deposit the amount

Previous Decisions

Arbitrator passed award dated 28.04.1995; award made rule of court; executing court passed order dated 02.05.2003 in Execution Petition No.6 of 2002

Issues

Whether the executing court erred in directing deposit of outstanding decreetal amount with interest at 15% per annum? Whether the revision under Section 115 CPC is maintainable against the order of the executing court?

Submissions/Arguments

Union of India argued that the executing court had no jurisdiction to calculate interest and that the order was erroneous. Respondent argued that the executing court correctly calculated the interest as per the award.

Ratio Decidendi

The executing court cannot go behind the decree and must execute the decree as per its terms. The calculation of interest by the executing court was in accordance with the award and the decree.

Judgment Excerpts

This is a revision under Section 115 of the Code of Civil Procedure, 1908 against the order passed below Exhibit-1 in Execution Petition No.6 of 2002 dated 02.05.2003 by the Judge, Court No.11, City Civil Court, Ahmedabad, whereby the Union of India was directed to deposit on or before 15.07.2003 the outstanding decreetal amount arrived at after deducting the amount deposited with the interest by the judgment debtor from time to time, as narrated from B1 to B7 in the calculation sheet.

Procedural History

Arbitration award dated 28.04.1995; award made rule of court; execution petition filed; executing court passed order dated 02.05.2003; Union of India filed revision under Section 115 CPC on 26.02.2004; High Court dismissed revision on 25.02.2026.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 115
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