1.0 Present Civil Revision Application under Section 115 of the Code of Civil Procedure r/w Section 12 of the Gujarat Public Works Contracts Dispute Arbitration Tribunal Act (hereinafter referred to as “the Act”) has been preferred by the applicant herein original defendant to quash and set aside impugned judgment and order passed by the learned Tribunal under the Act dated 7.12.2004 passed in Transfer Arbitration Reference No. 7 of 1998 in so far as awarding interest is concerned.
2.0 That against the total claim of Rs.4,08,63,792/by judgment and order dated 7.12.2004 the learned Tribunal has partly allowed the said Transfer Arbitration Reference holding that the original claimantrespondent herein to recover Rs. 10,04,629.86 with running simple interest from the petitioner herein as per the following calculations:
(1). From the next date of notice i.e. 1.4.1987 to 31.12.1993 at the rate of 12% p.a.
(2). For the period from 1.1.1994 to 30.6.1998 at the rate of 9% p.a.
(3). For the period from 1.7.1998 to the date of realization at the rate of 6% p.a.
2.1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Tribunal in so far as awarding interest at the rate of 12% p.a. from the next date of notice i.e. 1.4.1987 to 31.12.1993 and at the rate of 9% p.a. for the period from 1.1.1994 to 30.6.1998 and at the rate of 6% p.a for the period from 1.7.1998 to the date of realization, the petitioner hereinoriginal defendant has preferred present Civil Revision Application under Section115 of the Code of Civil Procedure r/w Section 12 of the Act.
3.0 Having heard learned advocates for the respective parties, it appears that the dispute is only with respect to the rate of interest. Shri H.K. Parmar, learned advocate for the respondent has as such relied upon the decision of the Hon'ble Supreme Court in the case of State of Rajasthan and Another vs. Ferro Concrete Construction Pvt Ltd reported in 2009 Arbitration W.L.J 386(SC) and the recent decision of the Hon'ble Supreme Court in the case of Punjab & Sind Bank vs. Allied Beverage Company Pvt. Ltd & others reported in (2010) 10 SCC 640 and has stated at the bar that he has no objection if the rate of interest is reduced from 12% p.a to 9% p.a from the next date of notice i.e. 1.4.1987 to 31.12.1993. Shri Kabir Hathi, learned AGP appearing on behalf of the applicant as such is not in a position to point out any contrary decision to the decisions cited at the bar on behalf of learned advocate for the respondent herein. In the facts and circumstances of the case and considering the decisions of the Hon'ble Supreme Court in the case of Ferro Concrete Construction Pvt Ltd (supra) and Allied Beverage Company Pvt. Ltd & others (supra), it appears to the Court that if the rate of interest for the period between next date of notice i.e. 1.4.1987 to 31.12.1993 is reduced from 12% p.a to 9% p.a, it will meet the end of justice and it will strike the balance.
4.0 Under the circumstances, present Civil Revision Application is allowed in part and the impugned judgment and order passed by the learned Tribunal under the Act dated 7.12.2004 passed in Transfer Arbitration Reference No. 7 of 1998 is hereby modified to the extent that the respondent hereinoriginal claimant shall be entitled to Rs.10,04,629.86 with simple interest from the date of notice i.e. 1.4.1987 to 31.12.1993 at the rate of 9% p.a. The rest of the judgment and order passed by the learned Tribunal inclusive of awarding interest at the rate of 9% p.a, 9% p.a for the period from 1.1.1994 to 30.6.1998 and 6% p.a for the period from 1.7.1998 to the date of realization respectively is hereby confirmed. Rule is made absolute to the aforesaid extent.
“kaushik”
( M. R. Shah, J. )