Delhi Development Authority vs Chander Kant and Co. and Another

Mukul Mudgal, J.—With consent of counsel for the parties the appeal is taken up for hearing.

This appeal challenges the judgment of the learned Single Judge dated 3 rd March, 2003 making the award dated 20th March, 1995 a rule of

the Court except allowing the objection preferred by the appellant DDA qua Claim No. 1 and 24.

The only contention which is pressed by the counsel for the appellant DDA is that the arbitrator awarded interest on interest inasmuch as Claim

No. 28 towards interest which was awarded by the arbitrator for a sum of Rs. 9,16,491/ forms part of the total awarded amount of Rs.

33,95,555/- and the arbitrator has awarded thereafter interest on this total figure of Rs. 33,95,555/ - at 12% per annum from the date of the

award till the date of the decree or actual payment whichever is earlier.

We find that the objection taken by the appellant on this issue with respect to interest on interest is correct and is liable to be sustained as the

award Claim No. 28 was only in respect of intent. We therefore modify the award to the extent that the interest shall not be granted on Rs.

33,95,555/- but only after reducing the amount of Rs. 9,16,491/- from the amount of Rs. 33,95,555/-. The grant of interest as per the date

indicated in the award is thus allowed on the amount of Rs. 24,79,064/-. We may however note that in the connected appeal FAO (OS) No.

349/2003 we have further modified the award by allowing Claim No. 1 without any interest in the facts and circumstances of the case to the

respondent herein and which claim though granted by the arbitrator had been set aside by the learned Single Judge.

Accordingly, this appeal is disposed of by allowing the appeal to the extent of reducing the principal amount of the Award which had

erroneously included the figure of interest in the principal amount.