TaxTMI 
TaxTMI 
2009 (10) TMI 530
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....006, whereby and whereunder the appeal preferred by appellant herein under section 39 of the Arbitration Act, 1940 (hereinafter shall be referred to as 'the Act') has been dismissed, which arose out of die orders dated 13.09.2005 and 26.11.2005 passed by District Judge, Jaipur, in Arbitration Case No. 143/1998 and Misc. Arbitration Application No. 443/2005 respectively. 3. Thumb nail sketch of the facts of the case is as under:- 4. Respondent/State of Rajasthan had issued notice inviting tender on 03.01.1981 and 11.02.1981 for grant of contract for laying PSC pipeline in Kota Division. Appellant herein, pursuant to the said notice submitted its tender. 5. The tender of the appellant being lowest was accepted on 18.04.1982. The agreement,....
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....ed, thus, an application for review was filed by the appellant. The same came to be heard and disposed of on 26.11.2005. The award was made rule of the court and appellant was awarded only simple interest at the rate of 9% per annum from the date of decree of the award. It is against the aforesaid two orders and judgments passed by learned District Judge, appellant was constrained to carry the matter further before the learned Single Judge by filing miscellaneous appeal as mentioned hereinabove. 12. Learned Single Judge considered the matter from all angles and came to the conclusion that even though the arbitrators have got the power to grant interest at all the three stages, i.e., pre-reference, pendente lite interest and future interest....
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.... of interest can be easily disposed of as it is covered by recent decisions of this court. It is sufficient to refer to the latest decision of a five judge bench of this court in Secretary, Irrigation Department, Govt, of Orissa v G.C. Roy (1992) 1 SCC 508.: JT (1991) 6 SC 309. Though the said decision deals with the power of the arbitrator to award interest pendente lite, the principle of the decision makes it clear that the arbitrator is competent to award interest for the period commencing with the date of award to the date of decree or date of realization, whichever is earlier. This is also quite logical for, while award of interest for the period prior to an arbitrator entering upon the reference is a matter of substantive law, the gra....
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.... as the Division Bench was right in observing that the arbitrator, in the facts and circumstances, could have awarded interest. The arbitrator had granted interest at the rate of eighteen per cent on the ground of loan so advanced by HCL to BOL at that rate. 37. Now section 34 of the Code of Civil Procedure has no application to arbitration proceedings since the arbitrator cannot be said to be a 'court' within the meaning of the Code. But an arbitrator has power and jurisdiction to grant interest for all the three stages provided the rate of interest is reasonable. So far as interest for pre-reference period is concerned, in view of the conflicting decisions of this court, the matter was referred to a larger Bench in Executive Engineer, DJi....
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..... It may be called interest, compensation or damages. This basic consideration is as valid for the period the dispute is pending before the arbitrator as it is for the period prior to the arbitrator entering upon the reference. This is the principle of section 34, Civil Procedure Code, and there is no reason or principle to hold otherwise in the case of arbitrator, (ii)An arbitrator is an alternative forum for resolution of disputes arising between the parties. If so, he must have the power to decide all the disputes or differences arising between the parties. If the arbitrator has no power to award interest pendente lite, the party claiming it would have to approach the court for that purpose, even though he may have obtained satisfaction....
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....le feature of law. (v)Interest pendente lite is not a matter of substantive law, like interest for the period anterior to reference (pre-reference period). For doing complete justice between the parties, such power has always been inferred." 18. In the light of the aforesaid judgments of this court we have no hesitation to hold that impugned orders passed by learned District Judge as also by learned Single Judge of High Court cannot be sustained in law. 19. Even though learned counsel for respondent tried to advance arguments that in this appeal no case for interference has been made out but, at last, in the teeth of aforesaid judgments, peevishly conceded that the impugned orders, cannot be sustained in law. 20. Learned Single Judge al....