National Aluminium Co. Ltd. v. Varun Shipping Co. Ltd., (S.C.) BS192404
SUPREME COURT OF INDIA

Before:-G.B. Pattanaik and B.N. Agrawal, JJ.

Civil Appeal No. 3357 of 2001 (Arising out of SLP(C) No. 15490 of 2000) with Civil Appeal Nos. 3358 and 3359 of 2001 (Arising out of SLP(C) Nos. 15542 and 15568 of 2000). D/d. 25.04.2001.

National Aluminium Co. Ltd. - Petitioner

Versus

M/s. Varun Shipping Co. Ltd. - Respondent

Arbitration Act, 1940 Section 29

ORDER

Leave granted.

2. These appeals are directed against the orders of a Division Bench of the Bombay High Court affirming the judgment of the learned Single Judge. Awards having been passed by the Arbitrator under the Arbitration Act, 1940 Which awards were unreasoned awards, objections were filed by the appellants. The learned Single Judge of the Bombay High Court overruled those objections and made the awards a Rule of the Court. The appellants approached the Division Bench in appeal and the appeals having been dismissed, the present appeals are before this Court.

3. The learned Additional Solicitor General appearing for the appellants raises two contentions in assailing the validity of the awards in question. One, the Arbitrator had no jurisdiction to award compensation for demurrage charges in view of the terms of the agreement itself and two, in any view of the matter, the award of interest of 15 per cent is grossly excessive and the same cannot be sustained. So far as the first contention is concerned, having examined the awards of the Arbitrator and the contentions raised by the learned A.S.G. in assailing the legality of the same and which contention stood rejected, as well as the judgment of the Division Bench of the High Court, we are unable to persuade ourselves to agree with the submissions made and examine the correctness of the contention with reference to the provisions of the agreement itself which did not form a part of the award. But so far as the second contention is concerned, on the face of it, the award of interest at 15 per cent appears to be excessive. We, therefore, reduce the same to 9 per cent. The reduction of interest is qua the rate of interest awarded by the Arbitrator and does not alter the rate of interest awarded in the decree itself. The award amount in question should be paid within eight weeks from today.

Subject to the aforesaid reduction on the question of interest, the awards stand confirmed and the appeals stand disposed of.

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