EXECUTIVE ENGINEER, DHENKANAL MINOR IRRIGATION DIVISION, ORISSA, ETC. ETC. versus N.C. BUDHARAJ (DEAD) BY LRS. ETC. ETC.

EXECUTIVE ENGINEER, DHENKANAL MINOR IRRIGATION DIVISION, ORISSA, ETC. ETC. versus N.C. BUDHARAJ (DEAD) BY LRS. ETC. ETC.

The arbitrator appointed without the intervention of the court has jurisdiction to award interest for the pre-reference period in cases arising prior to the Interest Act, 1978, unless there is a specific contractual prohibition, as arbitration is a substitute for a conventional civil court and the Interest Act, 1839 does not confine its applicability solely to proceedings before courts.

Parties
Appellant: Executive Engineer, Dhenkanal Minor Irrigation Division, Orissa; Respondent: N.C. Budharaj (Dead) by LRs.
Jurisdiction
India
Judgment Date
10 January 2001
Procedural Posture
Civil Appeal / Constitution Bench Judgment
Outcome
Appeals dismissed
Legal Topics
Interest for Pre Reference Period, Arbitrator's Jurisdiction, Interest Act
Arbitration Interest Contract Interest for Pre Reference Period Arbitrator's Jurisdiction Interest Act

Case Brief

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Parties

Executive Engineer, Dhenkanal Minor Irrigation Division, Orissa

Appellant

N.C. Budharaj (Dead) by LRs.

Respondent

Procedural Posture

Civil Appeal / Constitution Bench Judgment

Legal Issues

  1. 1 Whether an arbitrator has jurisdiction to award interest for the pre-reference period under the Interest Act, 1839, when appointment is made without the intervention of Court
  2. 2 Whether this jurisdiction exists in cases arising prior to the Interest Act, 1978

Ratio Decidendi

The arbitrator appointed without the intervention of the court has jurisdiction to award interest for the pre-reference period in cases arising prior to the Interest Act, 1978, unless there is a specific contractual prohibition, as arbitration is a substitute for a conventional civil court and the Interest Act, 1839 does not confine its applicability solely to proceedings before courts.

Court Disposition

Appeals dismissed

Orders

  • Arbitrators may award interest for pre-reference period in absence of contractual prohibition.