M/S B.L. GUPTA CONSTRUCTION (P) LTD. versus BHARAT COOPERATIVE GROUP HOUSING SOCIETY LTD.

M/S B.L. GUPTA CONSTRUCTION (P) LTD. versus BHARAT COOPERATIVE GROUP HOUSING SOCIETY LTD.

Where an agreement stipulates delayed payment interest, contractor is entitled to pre-reference interest as per the agreement. Arbitrator's grant of pendente lite interest under s. 34 CPC should not be disturbed by High Court absent specific reasons. On facts, justice requires payment of both pre-reference and...

Source-derived case information.

Parties
Appellant: B.L. Gupta Construction (P) Ltd.; Respondent: Bharat Cooperative Group Housing Society Ltd.
Jurisdiction
India
Judgment Date
05 November 2003
Procedural Posture
Civil Appeal / Appeal From Delhi High Court Judgment Dated 1.8.2001 Corrected on 3.9.2001 in FAO (os) No. 78 of 1996
Outcome
Appeal allowed in part
Legal Topics
Interest, Pre Reference Interest, Pendente Lite Interest, Work Contract Dispute, Award Enforcement
Arbitration Interest Pre Reference Interest Pendente Lite Interest Work Contract Dispute Award Enforcement

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Parties

B.L. Gupta Construction (P) Ltd.

Appellant

Bharat Cooperative Group Housing Society Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Delhi High Court Judgment Dated 1.8.2001 Corrected on 3.9.2001 in FAO (os) No. 78 of 1996

Legal Issues

  1. 1 Entitlement of pre-reference interest on arbitration award
  2. 2 Entitlement of pendente lite interest
  3. 3 Appropriate rate of interest in light of agreement and CPC s. 34

Ratio Decidendi

Where an agreement stipulates delayed payment interest, contractor is entitled to pre-reference interest as per the agreement. Arbitrator's grant of pendente lite interest under s. 34 CPC should not be disturbed by High Court absent specific reasons. On facts, justice requires payment of both pre-reference and pendente lite interest at 10% per annum.

Court Disposition

Appeal allowed in part

Orders

  • Appellant to be paid pre-reference and pendente lite interest at 10% per annum
  • No order as to costs