SUPERINTENDING ENGINEER AND ORS. versus B. SUBBA REDDY

SUPERINTENDING ENGINEER AND ORS. versus B. SUBBA REDDY

Cross-objection under Order 41 Rule 22 CPC is not maintainable in an appeal under Section 39 of the Arbitration Act, 1940, as the right to cross-objection is not conferred by the Act. Award of damages by way of interest for period prior to date of reference is impermissible absent agreement or applicability of Interest Act, 1978.

Parties
Appellant: Superintending Engineer and Others; Respondent: B. Subba Reddy
Jurisdiction
India
Judgment Date
26 April 1999
Procedural Posture
Civil Appeal / Appeal From Andhra Pradesh High Court Judgment Dated 23.12.92 in A.a.o. Nos. 5, 386, 493 & 1268/90 and CRP Nos. 1135, 1136, 1134, and 818/1990
Outcome
Appeal allowed in part; judgment of High Court reversed to the extent it restored 18% interest and interfered with the trial court decree.
Legal Topics
Arbitration Act – Appealability, Cross Objections Under Order 41 Rule 22 CPC, Interest Award as Damages, Application of CPC Provisions in Arbitration Appeals
Arbitration Civil Procedure Arbitration Act – Appealability Cross Objections Under Order 41 Rule 22 CPC Interest Award as Damages Application of CPC Provisions in Arbitration Appeals

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Parties

Superintending Engineer and Others

Appellant

B. Subba Reddy

Respondent

Procedural Posture

Civil Appeal / Appeal From Andhra Pradesh High Court Judgment Dated 23.12.92 in A.a.o. Nos. 5, 386, 493 & 1268/90 and CRP Nos. 1135, 1136, 1134, and 818/1990

Legal Issues

  1. 1 Whether cross-objections are maintainable in an appeal under Section 39 of the Arbitration Act, 1940
  2. 2 Whether the arbitrator could award interest (as damages) for period prior to reference of disputes
  3. 3 Whether interest over interest can be awarded

Ratio Decidendi

Cross-objection under Order 41 Rule 22 CPC is not maintainable in an appeal under Section 39 of the Arbitration Act, 1940, as the right to cross-objection is not conferred by the Act. Award of damages by way of interest for period prior to date of reference is impermissible absent agreement or applicability of Interest Act, 1978.

Court Disposition

Appeal allowed in part; judgment of High Court reversed to the extent it restored 18% interest and interfered with the trial court decree.

Orders

  • Award of damages by way of interest at 15% per annum for period prior to reference set aside.
  • Award of interest at 12% per annum as decreed by trial court is restored.