M/S. GOKUL LAMP WORKS PRIVATE LIMITED v. MYSORE LAMP WORKS LIMITED

Supreme Court of India · 07 Feb 2025
SANJIV KHANNA; SANJAY KUMAR
CIVIL APPEAL NOS. OF 2025
2025 INSC 205
civil appeal_allowed Significant

AI Summary

The Supreme Court held that post-award interest at 14% per annum is payable from the date of the arbitral award until payment, setting aside the High Court's order and directing payment within ten weeks.

Full Text
Translation output
2025 INSC 205
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. OF 2025
(arising out of SLP(C) Nos. 22570-22572 of 2024)
M/S. GOKUL LAMP WORKS PRIVATE
LIMITED ETC. ..... APPELLANT(S)
VERSUS
MYSORE LAMP WORKS LIMITED ..... RESPONDENT(S)
Leave granted.
During the hearing, it is accepted that payment of
60,94,400/- (Rupees Sixty Lakhs Ninety Four Thousand Four Hundred
₹ only) along
WITH
pendente lite interest at the rate of 12.75% per annum has been made to the appellant, M/s. Gokul Lamp Works Private
Limited. It is also accepted that the appellant, M/s. Thamaka Lamp
Components Private Limited, has received the payment of
54,37,036/- (Rupees Fifty Four Lakhs Thirty Seven Thousand Thirty

Six only) along
WITH
pendente lite interest at the rate of 12.75% per annum.
The dispute before us only relates to post-award interest,1 that is,
WITH
effect from 19.01.2005 till 09.04.2019 when
15,23,600/- (Rupees Fifteen Lakhs Twenty Three Thousand Six

Hundred only) was paid/deposited and till 20.01.2023 when
91,03,844/- (Rupees Ninety One lakhs Three Thousand Eight Hundred
ORDER

1 Awards dated 19.01.2005 passed by the Arbitral Tribunal in Arbitration Case Nos. 58/1998 and 51/1998. Forty Four only) was paid/deposited. The payments would be set off against the principal amount of 60,94,400/- (Rupees Sixty Lakhs ₹ Ninety Four Thousand Four Hundred only), for the appellant, M/s. Gokul Lamp Works Private Limited. Similarly, for the appellant, M/s. Thamaka Lamp Components Private Limited, the dispute before us only relates to post-award interest, that is, with effect from 19.01.2025 till 09.04.2019 when 13,59,260/- (Rupees Thirteen Lakhs Fifty Nine Thousand Two Hundred ₹ Sixty only) was paid/deposited and till 20.01.2023 when 81,31,312/- (Rupees Eighty One Lakhs Thirty One Thousand Three ₹ Hundred Twelve only) was paid/deposited. The payments would be set off against the principal amount of 54,37,036/- (Rupees Fifty Four ₹ Lakhs Thirty Seven Thousand Thirty Six only), for the appellant, M/s. Thamaka Lamp Components Private Limited. Having considered the pleas and contentions of the parties, we are inclined to set aside the impugned judgment dated 18.11.2022,[2] which had set aside the award on the question of payment of postaward interest. We direct that the respondent, Mysore Lamp Works Limited, will pay simple interest at the rate of 14% per annum from the date of the award, that is 19.01.2005 till payment(s) is/are made. The impugned order dated 30.05.2024[3] dismissing the review petition filed against the judgment dated 18.11.2022 is also accordingly set aside. A copy of the computation chart/sheet will be furnished and made available to the appellants, M/s. Gokul Lamp Works Private

2 Passed by the High Court in Miscellaneous First Appeal Nos. 2389/2018(AA) and 2390/2018(AA).

3 Passed by the High Court in Review Petition no. 163/2023 in in Miscellaneous First Appeal Nos. 2389/2018(AA) and 2390/2018(AA). Limited and M/s. Thamaka Lamp Components Private Limited. The aforesaid payment will be made within ten weeks from today. We have passed the above order, as it is pointed out that the respondent, Mysore Lamp Works Limited, was earlier functional but is now being used for public purposes. Appeals are disposed of, giving liberty to the parties to file an application before this court in case of difficulty or failure to comply and make payment. In case of delay in payment, this court will revise the rate of interest. The appeals are partly allowed and disposed of in the above terms. Pending application(s), if any, shall stand disposed of.................CJI. (SANJIV KHANNA) .................. J. (SANJAY KUMAR) NEW DELHI; FEBRUARY 07, 2025.