SUPREME COURT OF INDIA

Before:- S. Rajendra Babu and S.N. Phukan, JJ.

Civil Appeal No. 3586 of 1984. D/d. 17.3.1999.

Executive Engineer - Appellant

Versus

N.C. Budhi Raj (dead) by L.Rs. - Respondent

For the Appellant :- Mr. Raj Kumar Mehta, Advocate.

For the Respondent :- Mr. A.K. Panda, Sr. Advocate, Mr. K.K. Patel, Mr. J.K. Pradhan, Mr. R.P. Wadhwani, Advocates.

Arbitration Act, 1940, Section 14 - Arbitration - Interest - Question for consideration whether an Arbitrator is entitled to consider the award of interest with reference to pre-reference period - Inconsistent observations in two decisions of Supreme Court - Matter referred to three Judge Bench.

[Para 1]

Cases Referred :-

State of Orissa v. B. N. Agarwalla (1997) 2 SCC 469.

Secretary, Irrigation Department v. G. C. Roy (1992) 1 SCC 508.

ORDER

In this case the question for consideration is whether an Arbitrator is entitled to consider the award of interest with reference to pre-reference period. Strong reliance is placed on behalf of the appellants on the decision of this Court in State of Orissa v. B. N. Agarwalla (1997) 2 SCC 469 . Learned counsel for the respondents brings to our notice the decision of this Court in Secretary, Irrigation Department v. G. C. Roy (1992) 1 SCC 508 which contains certain observations which may be inconsistent with the observations made in Agarwalla's case. We think, therefore, it will be appropriate to place it before three Judge Bench.

Order accordingly.