HIND BUILDERS ETC. versus UNION OF INDIA AND VICE-VERSA

HIND BUILDERS ETC. versus UNION OF INDIA AND VICE-VERSA

Division Bench exceeded jurisdiction in reducing award under item (c)(xii); pendente lite interest cannot be awarded unless arbitrator is appointed in course of a suit and has powers under S.34 CPC; award's calculation of interest must be based on principal sum including (c)(xii).

Parties
Appellant: Hind Builders; Respondent: Union of India
Jurisdiction
India
Judgment Date
24 April 1990
Procedural Posture
Civil Appeal / Supreme Court Cross Appeals Against Division Bench Judgment in Arbitration Matter
Outcome
Appeals allowed in part
Legal Topics
Error on the Face of the Award, Interpretation of Contract Clauses, Grant of Pendente Lite Interest by Arbitrators, Scope of Arbitrator's Powers, Interest Act, 1978, Section 34, Code of Civil Procedure
Arbitration Error on the Face of the Award Interpretation of Contract Clauses Grant of Pendente Lite Interest by Arbitrators Scope of Arbitrator's Powers Interest Act, 1978 Section 34, Code of Civil Procedure

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Parties

Hind Builders

Appellant

Union of India

Respondent

Procedural Posture

Civil Appeal / Supreme Court Cross Appeals Against Division Bench Judgment in Arbitration Matter

Legal Issues

  1. 1 Whether the Division Bench was correct in reducing the amount awarded under item (c)(xii) in arbitration award
  2. 2 Whether contractors are entitled to pendente lite interest
  3. 3 Whether the principal sum for interest calculation should exclude interest already awarded

Ratio Decidendi

Division Bench exceeded jurisdiction in reducing award under item (c)(xii); pendente lite interest cannot be awarded unless arbitrator is appointed in course of a suit and has powers under S.34 CPC; award's calculation of interest must be based on principal sum including (c)(xii).

Court Disposition

Appeals allowed in part

Orders

  • Amount awarded under item (c)(xii) by arbitrators restored
  • Interest payable on sum of Rs.45,50,658