GHULAM MOHAMMAD DARversusSTATE OF J & K & ORS.

                          [2008] 1 S.C.R. 13


                    GHULAM MOHAMMAD DAR                           A
                                  II.
                     STATE OF J & K & ORS.
                       (C.A. No. 12 of 2008)
                         JANUARY 4, 2008
                                                                  B
            [G.P. MATHUR AND P. SATHASIVAM, JJ.]

       -{ Arbitration - Interest on award amount - High Court
     hoiding that interest@ 18% p.a. for award amount from date·
     of decree till realization - Claimant's case that interest on c
     decretal amount to be paid from date of Award and not from
     date of decree - On appeal,, held: Order of High Court upheld
     - Moreso, interest was to be paid by State Government -
     Interest.
          An arbitrator passed an award in favour of the D
     claimant. High Court made the award the Rule of the Court
     and the amount found due along with interest awarded
     by the Arbitrator was to be paid from the date of decree
     with interest at 18% till final realization of the decretal
     amount of the petition. Hence the present appeal.           E
          Appellant contended that in view of default in
     payment of the amount within the stipulated time, the
     appellant was entitled to interest@ 18% p.a. from the date
     of the Award and not from the date of the decree.
                                                                  F
       _; Disposing of the appeal, the Court
.'        HELD: The direction of the Arbitrator and the order
     passed by the High Court both in the Arbitration Petition
     and Revision Petition is verified. On perusal of the same
     and of the fact that the respondents are none other than G
     the State Government, the order of the High Court passed
     in~rbitration Petition is concurred with and held that the
     claimant is entitled to interest @ 18% p.a. for the award
     amount from the date of the decree till realization. To this
     extent, the position is clarifimJ. [Para 8] [15-F, G]        H
    14       SUPREME COURT REPORTS                    [2008) 1 S.C.R.

                                                                         )
A        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 12 .
    of 2008
          From the final Judgment and Order dated 1.2.2006 of the
    High Court of Jammu & Kashmir at Srinagar in C.R. No. 47/
    200€1
B
         M.L. Bhat, Purnima Bhat for the Appellant.
         Anis Suhrawardy and S. Mehdi Imam for the Respondents.
         The Judgment of the Court was delivered by
c        P. SATHASIVAM, J. 1) Leave granted.
        2) This appeal is directed against the order dated
  01.09.2006 passed by the High Court of Jammu and Kashmir
  at Sri Nagar in Civil Revision No. 47 of 2006 whereby the High
D Court dismissed the civil revision filed by the appellant herein.
        3) In view of the limited issue i.e., interest payable by the
  respondents, there is no need to traverse the entire factual matrix
  except relating to the issue in question.
         4) According to the appellant, the executing Court has
E
    wrongly interpreted the judgment passed by the High Court as
    well as the provisions of the Arbitration Act and erroneously
    refused to release the interest on the Award/decretal amount
    from the date of Award till passing of the decree.

F        5) It is not in dispute that an Award came to be passed on      ...
    05.09. 1995 which was made a Rule of the Court and accordingly
    decree came to be passed on 30.04.1998.                                       ;



         6) It is relevant to reproduce the Award of the Arbitrator in
    respect of the interest which reads as under:
G
         'The claimant shall be entitled to 10% S.l.P.A. beyond
         10.11.1995 till payment is made in full by the respondents
                                                                             ,.
         of the full awarded amount. Respondent No.3 shall be
         liable to discharge and pay the final bill pending since
         27 .12.1993 with him failing which 18% P.A. simple interest
H
                            GHULAM MOHAMMAD DAR v.                           15
                       STATE OF J & K & ORS. [Sathasivam, J.]
          .,
                      shall. be paid over and above from 1.2.1994 till date of A
                      actual payment."
                     Though there is little confusion in the direction of the
               Arbitrator, it is presumed that the Arbitrator has granted interest
               @ 10% (simple interest p.a.) from 10.11.1995 till payment is
j              made in full by the respondents. The latter part of the said B
               direction shows that in case of default, the Award amount carries
      i        interest@ 18% simple interest per annum from 01.02.1994 till
               date of actual payment.
                     7) On 30.04.1998, learned single Judge of the High Court
               disposed of Arbitration Petition No. 171 of 1991 by passing the
                                                                                  c
               following order:
                           "In the totality of the circumstances, I order that let
                      award be made rule of the Court and the amounts found
                      due along with interest awarded by the Arbitrator be paid D
                      from the date of decree with interest at 18% till final
     t,               realization of the decretal amount of the petition. Let decree
                      be prepared accordingly."
                     8) Learned senior counsel appearing for the appellant, by
               drawing our attention to the direction of the Arbitrator as well as E
               the ultimate order passed by the High Court, submitted that in
               view of default in payment of the amount within the stipulated
               time, the appellant is entitled interest@ 18% p.a. from the date
               of the Award and not from the date of the decree. In the light of
               the controversy, we verified the direction of the Arbitrator and F
               the order passed by the High Court both in the Arbitration and
               Revision Petition. On perusal of the same and of the fact that
               the respondents are none other than the State Government, we
               agree with the order of the High Court dated 30.04.1998 passed
               in Arbitration Petition No. 171 of 1991 and hold that the claimant G
               is entitled to interest@ 18% p.a. for the award amount from the
     ~         date of the decree till realization. To this extent, we clarify the
               position. The Civil Appeal is disposed of on the above terms.
 '
               No costs.
i1             N.J.                                       Appeal disposed of.     H