RAVIBUILDERS v. NORTHDELHI MUNICIPAL CORPORATION

1. These two appeals are directed against the common impugned order dated October, 2018 passed by the leamed Single Judge in OMP (ENF.) (COMM.)Nos 60/2018 and 61/2018. The order itselfa short one and reads EFA(OS)(COMM.)Nos,1&2of2019 Page1of[3] 2019:DHC:7717-DB as under: "The only dispute that is left in these execution petitions is whether the Arbitrator in the Arbitral Award has directed the payment of interest for the post award period only on the principal amount awarded in the Arbitral Award or also on the interest that would have accrued till the date ofpassing ofthe Award. Thefinaldirection ofthe Arbitratorinthe Award isreproduced hereinbelow: '''"Claim No.8 The claimant claims interest @15% per annUm of pre suit, pendentlite andforfuture.Inthelightoffinding givenin above Case the claimant shall be entitled for interest @15 per annum fi-om 26.10.2002 and from the date of notice 31.12.2004 to respondent's authority in respectofsecurity amount. A reading of the above would clearly show:that the future interest is to be paid only on the principal amount awarded in the Arbitral Award.There is no dispute thatthe said interest has been paid bythe respondenttothe petitioner. Learned counsel for the petitioner submits that the respondent has made certain deductions towards the Income Tax, Work Contract Tax and Service Tax. She further submits that certificatesinthisregard have notbeen given bytherespondent to the petitioner. Learned counsel for the respondent submits that the said certificates shall be handed over■ to the petitioner within a period ofthree weeksfi-om today. Recording the above undertaking, the present execution petitions are disposed of recording the due satisfaction ofthe Award."

2. Theissue concernsthe correctness ofthe view ofthe learned Single Judge EFA(OS)(COMM.)Nos.1&2of2019 Page2of[3] \4'. K J that"future interest is to be paid only on the principal amountawarded in the Arbitral award."

3. The issue is no longer res integra.It stands settled by thejudgment ofthe Supreme Court in Hyder Consulting(UK)Limited v. Governor, State Of Orissa(2015)2SCC189.By a majority of[2]:1,the Supreme Courthasinthe above decision conclusively held that for the purposes of Section 31 (7)of the Arbitration & Conciliation Act, 1996,the expression 'awarded amount' will include the principal amount as well as the interest accrued thereon till the date ofaward and notjustthe principal amount.

4. In that view ofthe matter,the impugned judgment ofthe learned Single Judge is hereby set aside. The question is answered in favour ofthe present Appellant.In effectthe Appellant would be entitled to paymentofinterestfor the post-award period,notonly on the principal amount,but on.the principal amount together with interest (pre and pendent lite) as awarded by the Arbitrator.

5. The appeals are allowed in above terms. The amount will be paid by the Respondent/Judgment Debtor to the Appellant/Decree Holder not later than eight weeksfrom today.

S.MURALIDHAR,J. I.S.MEHTA,J. APRIL02,2019 rd EFA(OS)(COMM.)Nos.1&2of2019 Page3of[3]