2017 (4) TMI 1423

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....e arbitrator by bis award dated 28.06.1999, besides awarding a sum of Rs. 9,20,694/- to the claimant, held the claimant also entitled to interest pendente lite, at the rate of 15% per annum. The operative part of the award passed by the arbitrator depicting the above position is extracted below: I therefore award a sum of Rs. 9,20, 694.00 in favour of the claimant and against the Respondent. The claimant will also be entitled to interest pendente lite at the rate of 15% per annum and interest on award until recovery at the rate of 15% per annum. The Union of India, namely, the Respondent before this Court, assailed the award passed by the arbitrator in the High Court of Calcutta, by preferring A.P. No. 39 of 1999. A learned sing....

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....order passed by the High Court dated 17.06.2005, limited to the determination with reference to pendente lite interest, has been assailed by the Appellant, through the instant civil appeal. During the course of hearing, it was not disputed, that the contractual obligation between the parties expressly provided, that interest could not be claimed, either on earnest money or on the security deposit, and even on amounts payable to the claimant. The relevant clause affirming the above position is extracted hereinbelow: "(2) Interest on amounts. No interest will be payable upon the earnest money or the security deposit or amounts payable to the contractor under the contract, but Government Securities deposited in terms of Sub-clause (1)....