mpt IN THE HIGH COURT OF JUDICATURE OF BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION NO. 453 OF 2007 Bharat Diamond Bourse .. Petitioner versus Vijay Industries & Projects Ltd. .. Respondent ... Mr.B. Colabawalla, P.N. Meha i/b M/s.Desai & Chinoy for the petitioner. Mr.Birendra Saraf i/b M/s.Hariani & Co. for the respondent. CORAM : D.G.KARNIK, J DATED : 15th April 2008 P.C.: 1. Heard. 2. The only point urged by Mr.Colabawalla for the petitioner is that the Arbitral Tribunal could not have awarded interest on damages. He invited my attention to paragraph no.12.7 of the award and submitted that the Arbitrator has himself noted that large part of the claim was in the nature of damages and taking that into consideration the learned Arbitrator allowed interest at the rates reduced rate of 9% instead of 18% claimed by the respondents. Mr.Colabawala submitted that Arbitrator was not entitled to award any interest on the damages. In support he referred to and relied upon the decision of the Supreme Court in State of U.P. & Others Vs. Bhriguji Constructions reported in (2004) 13 SCC 741. That was a case arising out of a writ petition filed under Article 227 of the Constitution of India. Therein, the Supreme Court held that interest on damages could not have been awarded. 2. Per Contra, Mr.Saraf for the respondent submitted that with a Bench of co-equal strength of the Supreme Court in Oil & Natural Gas Commission Vs. M.C.Clellant Engineers S.A. reported in AIR 1999 SC 1614 has held that the Arbitral Tribunal can grant interest pendete-lite on the amount of damages or compensation. Since that decision is directly on the point of grant of interest on damages by the Arbitral Tribunal that must be followed in preferance to a decision given in different kind of litigation. 3. So far as this court is concerned, a Single Judge of this Court in Union of India Vs. M/s.Anupam Builder & Another has taken a view that interest pendete-lite, cannot be awarded on the amount of damages. However in the later judgement, a Division Bench of this Court in Susaka Pvt.Ltd. Vs. Union of India reported in 2005(3) Bom.C.R. 58 has held that interest on damages can be awarded prior to the date of award i.e. even pendete-lite. In Municipal Corporation of Gr. Mumbai Vs. Atlanta Infrastructure Ltd. reported in 2006(2) Bom.C.R.596, another Division Bench, relying upon the decision of the Supreme Court in Executive Engineers, Dhenkanal Minor Irrigation Division, Orissa & ors. Vs. N.C. Budharaj & ors. reported in 2001(2) S.C.C. 721 has taken a view that an interest can be awarded by the Arbitral Tribunal pendete-lite even on the amount of damages. 4. The view taken by Division Benches of this court that interest pendete-lite can be awarded even on the amount of damages is binding on me. In the light thereof, there is no merit in the submission of the petitioner. 5. No other point was urged. 6. Arbitration Petition is accordingly rejected. (D.G. KARNIK, J)