Annual Arbitration Review 2018

ARSS Infrastructure Projects Ltd. v. Calcutta Haldia Port Road Company Ltd.

Reading Time: 2 minutes

Citation:2018 SCC Online Del 10689

Court:Delhi High Court

Date of Judgment: 16-August-2018

Coram:J. Navin Chawla

Issue:Can the Court interfere and modify or set aside an enforcement award in cases with conflict of post award interest?

Facts:

The petition filed by the Petitioner is an enforcement petition for the award passed by a Sole arbitrator and later enforced by the court on 10.05.2013. The award is for the payment of a certain sum by the respondent to the petitioner which includes the principal sum plus the pre award interest and also the post award interest. The amount to be paid was 2,91,83,200 which was paid by the respondent the question arose for the payment of post award interest. The post award interest was from the period 1-09-2009 till 31-03-2013 which amounted up to 1,06,48,000. The question arose that whether the respondents have to pay this amount. The Arbitrator had added interest on the principal sum and had not included the pre award interest in it.

Analysis:

The arguments made by the Petitioner were not accepted by the Court as to because they had no relevance to the facts of the present case. Hence, they were rejected.

Further the Court stated that as per Section 36 of the Arbitration Act they have to enforce the award as there are no valid grounds to set aside or amend the order. Hence, there are no valid grounds for setting aside the order because all the calculations and the rate of interest granted by the Arbitrator are as per the jurisdiction of the bench and as per the Arbitration Act and hence there are no grounds to modify or set aside the order.

Judgment:

The Court citing section 31 (c) of the Arbitration Act, stated that the calculation of interest and the amount to be paid is proper and hence there are no grounds to set aside or modify the order. Lastly, it stated that there is a very limited scope to interfere with the enforcement of an award and as per Section 36 of the Act it is the duty of the court to ensure that the award is implemented and enforced properly.

 

 

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