Ramamurthy vs M/S. Assunta Balu Developers & Ors

Leave granted.

These appeals arise out of the final judgment and order dated 29.07.2015 passed by the High Court of Karnataka at Bengaluru in Misc. First Appeal No.6435/2008 (AA) C/W Misc. First Appeal No.6436/2008 (AA).

In the present case, the arbitration proceedings were initiated under the Arbitration Act, 1940 and award was passed by the Arbitrator on 26.10.1995. In respect of compensation payable to the appellant, the Arbitrator stated as under:

"The seventh point is regard to the claims of the petitioners. It consists of the financial claims of Rs.48 lacs and Rs.41000/- and other non financial claims. The non financial claims are fully allowed.

The financial claims of the petitioner are allowed only to the extent of 28 lakhs and the rest is disallowed."

and then concluded:

"The respondent shall also pay interest at the rate of 18% per annum on Rs.28 lakhs (Rupees twenty eight lakhs only) from the date of the award till the date of the decree or till the date of payment of the amount whichever is earlier."

The Arbitrator also rejected the counter claim which was preferred by the present respondent in toto.

The appropriate application having been preferred by the appellant before the Court to make the award passed by the Arbitrator to be the rule of the Court, the matter was considered by the Civil Court and by its order dated 05.01.2008 the Civil Court accepted the prayer and at the same time it also rejected the objections preferred by the respondents.

The matter was carried further by filing First Appeal in the High Court and the High Court found:

"16. Not only the Court below has committed procedural error but has omitted to address the legal contentions raised by the Developer against the Award. In that view of the matter, we are of the considered opinion that the Court below shall reconsider the matter and record its findings in certain terms, in respect of all the legal contentions advanced by the Developer.

Hence, appeals are allowed.

The impugned judgment passed by the 4th Additional City Civil & Sessions Judge, Mayo Hall Unit, Bengaluru, in A.C. No.10002/1994 and Misc. No.10002/1996 is set aside. Both cases are remanded to the Court below for reconsideration, in the light of the observations made supra, with a direction to dispose of the cases as expeditiously as possible."

Being aggrieved, the appellant preferred Special Leave Petition (Civil) Nos.642-643 of 2016 in which notice was issued by this Court on 08.02.2016. It may be stated that because of pendency of the present matter, the proceedings pursuant to order of remand have not yet been initiated. We heard learned counsel for both sides.

Considering the entirety of the matter, in our view, ends of justice would be met if the respondents are directed to make over a sum of Rs.7.5 lakhs to the appellant by way of full and final settlement of all the claims of the appellant. The appellant shall be entitled to interest in case the aforesaid sum is not made over the appellant within six weeks from today and the interest shall be chargeable at the rate as ordered by the Arbitrator. Let the money be deposited in the Trial Court.

Upon such deposit being made, all the disputes between the parties shall be taken to have been finally settled.

The appeals are disposed of in aforesaid terms. No costs.