http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 2  

CASE NO.: Appeal (civil)  12 of 2008

PETITIONER: Ghulam Mohammad Dar

RESPONDENT: State of J & K & Ors.

DATE OF JUDGMENT: 04/01/2008

BENCH: G.P. Mathur & P. Sathasivam                                  

JUDGMENT: JUDGMENT

(Arising out of SLP (C) No. 16417 OF 2006)

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  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  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. 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: \023The claimant shall be entitled to 10% S.I.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 shall be paid  over and above from 1.2.1994 till date of actual payment.\024

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 made in full by the respondents.  The latter part of  the said direction shows that in case of default, the Award  amount carries 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  following order:         \023In 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 from  the date of decree with interest at 18% till final realization of  the decretal amount of the petition.  Let decree be prepared  accordingly.\024

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 2  

8)      Learned senior counsel appearing for the appellant, by  drawing our attention to the direction of the Arbitrator as well  as 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 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 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.