U.O.I & ANR Vs. M.P TRADING & INVESTMENT RAC. CORP. LTD
Supreme Court of India (Division Bench (DB)- Two Judge)
Appeal (Civil), 8077-8079 of 2015, Judgment Date: Sep 28, 2015
NON-REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS.8077-8079 OF 2015
[@ SPECIAL LEAVE PETITION (C) NO. 36013-36015 OF 2013]
U.O.I & ANR Appellant(s)
VERSUS
M.P TRADING & INVESTMENT RAC. CORP.
LTD Respondent(s)
J U D G M E N T
Leave granted.
The sole dispute in these cases is with regard to the payment of
interest when the proceedings under Section 34 of the Arbitration and
Conciliation Act, 1956 were pending before the High Court. In the case
before us, we find that the award was passed on 02.03.2001. When the
matters were pending before the High Court, there was a direction vide
order dated 04.02.2003 to deposit the Principal amount before the High
Court. The amount was deposited on 03.03.2003. Subsequently, by order
dated 22.05.2003, the High Court, on the request made by the respondent,
directed the Court deposit to be made as a Fixed Deposit in a nationalist
bank. Ultimately, the objections were rejected on 02.06.2006 and the
appeal thereon was also dismissed on 27.09.2006. Placing reliance on the
decision of Himachal Pradesh Housing and Urban Development Authority and
Anr. Vs. Ranjit Singh Rana reported in (2012) 4 SCC 505, it is contended by
the learned counsel appearing for the appellants that once the amount is
deposited in Court, there is no liberty to pay interest in terms of the
award.
Paragraph 15 of the Judgment reads as under :-
“The word 'payment' may have different meaning in different context but
in the context of Section 37(1)(b); it means extinguishment of liability
arising under the award. It signifies satisfaction of the award. The
deposit of the award amount into the Court is nothing but a payment to the
credit of the decree-holder. In this view, once the award amount was
deposited by the appellants before the High Court on
May 24, 2001, the liability of post-award interest from May
24, 2001 ceased. The High Court, thus, was not right in directing the
appellants to pay the interest @18% p.a. beyond May 24, 2001.”
In the present case, we find that the amount was to be deposited in a
Fixed Deposit at the request made by the respondent and it is not seen that
the respondent has made any request before the High Court for withdrawal of
the amount deposited as per the directions by the High Court. However, it
is submitted that the appellants have not deposited the full amount in
terms of the award.
In the above facts and circumstances of the case, we are of the view
that the appellants shall be entitled to interest as per award from the
date of award till the principal amount was deposited in the High Court on
03.03.2003. From the said date of 03.03.2003 till it was withdrawn, the
respondent shall be entitled only to the interest accrued on the principal
amount in terms of the Fixed Deposit made as per the direction by the High
Court.
However, the respondent shall be entitled to the interest in terms of
the award on the balance of the award amount which the appellants failed to
deposit in Court, as per the award.
The impugned Judgment of the High Court is modified to the above
extent. The Civil Appeals are disposed of with no order as to costs.
.......................J.
[KURIAN JOSEPH]
.......................J.
[ARUN MISHRA]
New Delhi;
September 28, 2015.