State of Punjab and Another vs M/s. H.S. Chahal, Engineer and Contractor

L.N. Mittal, J.—In this revision petition filed by State of Punjab and Executive Engineer (judgment debtors-JDs) under Article 227 of the Constitution of India, challenge is to order dated 14.11.2011 Annexure P/3 passed by the executing court regarding calculation of due amount payable to respondent-decree holder M/s. H.S. Chahal Engineer and Contractor. It is undisputed that Arbitrator passed award dated 6.8.1998 awarding Rs. 21,04,522/- to the respondent-contractor with interest @15% per annum from the date of filing of claim petition (5.10.1989) till the date of decree or date of payment whichever is earlier. Contractor filed petition on 10.8.1998 for making award rule of the court. The trial court vide judgment and decree dated 20.8.2001 made award rule of the court and passed decree accordingly and also awarded future interest from the date of decree till recovery @ 12% per annum. In appeal, the appellate court modified the award and decree of the trial court and awarded interest to the contractor @ 9% per annum with effect from 5.10.1989, the date of filing of the claim petition till the date of award (6.8.1998) and from date of filing of petition (10.8.1998) till recovery.

Learned executing court vide impugned order Annexure P/3 has held that JDs are still liable to pay Rs. 20,23,174/- as the balance amount. Feeling aggrieved, JDs have filed this revision petition to challenge the said order.

I have heard counsel for the parties and perused the case file.

The question to be determined is as to what would be the principal amount for calculating interest. Both the parties have furnished their calculations. Petitioners have furnished two different calculations Annexures P/5 and P/6 thereby showing balance of Rs. 11,54,620/- and Rs. 17,26,801/- whereas respondent-contractor has filed calculation (which is at page 67 of the paper book) depicting balance of Rs. 20,81,295/-.

Interest on the award amount of Rs. 21,04,522/- has been calculated @ 9% per annum since 5.10.1989 (date of filing the claim petition) till 6.8.1998 (date of award) to be Rs. 16,73,527/- and from the date of filing of petition in court (10.8.1998) till 20.8.2001 (date of decree of trial court) amounting to Rs. 10,28,457/-, taking the total amount (including award amount) to Rs. 48,06,506/- as per calculation furnished by the petitioners to which there is no serious dispute.

The petitioners admittedly paid Rs. 50,95,077/- (including tax deducted at source) on 30.9.2005 regarding which also there is no dispute.

The contractor after deducting the aforesaid amount paid to it and after taking into consideration some further payments has calculated interest on the balance amount including amount of interest as well. However, the same is not permissible. The principal amount would be the awarded amount and interest from the date of claim petition till date of award. Amount of interest pendente lite, when the petition remained pending in court, would not be part of the principal amount. However, petitioners have even calculated the said interest amount of Rs. 10,28,457/- to be part of the principal decretal amount on which interest has been calculated further. In view thereof, calculations Annexure P/5 furnished by the petitioners depicting balance of Rs. 11,54,620/- cannot be faulted with so as to grant more amount to respondent-contractor beyond the said amount. For the reasons aforesaid, I find that impugned order of the executing court showing balance amount of Rs. 20,23,174/- is illegal and suffers from jurisdictional error to the aforesaid extent. Accordingly, the instant revision petition is allowed. Impugned order Annexure P/3 passed by the executing court is modified and it is held that balance amount due was Rs. 11,54,620/- which has since been deposited on 13.3.2012 by the petitioners pursuant to interim order of this Court and the said amount has already been withdrawn by the respondent-contractor as submitted by counsel for the respondent. Accordingly, the execution petition filed by the respondent stands disposed of as fully satisfied.