Case: Nhpc Ltd Vs. M/S Jai Prakash Associates Ltd

3. On 11.08.2014, this Court issued notice of the appeal to respondent No. 1 confining it to examine only the question regarding the rate of interest awarded by the High Court on the awarded sum to the respondent.4. Therefore, the short question involved in the appeal is whether the rate of interest awarded by the High Court on the awarded sum is proper or not.5. Having regard to the short controversy involved in the case, it is not necessary to burden the order by mentioning the facts in detail except to the extent necessary for the disposal of the appeal.6. Theof India Company awarded a contract dated 21.03.2001 to respondent No.1 for doing some specific civil construction work in theV Hydroelectric Project at Sikkim known as Lotcivil works.7. In execution of the aforesaid work, disputes regardingof dues for the work done by respondent No.1 and several ancillary disputes in connection thereto arose between the parties. Since the parties could not amicably settle the disputes and hence they were referred to the Arbitral Tribunal in terms of the arbitration clause contained in the contract. The Arbitral Tribunal consisted of three arbitrators.8. Respondent No. 1 filed their claim for recovery of Rs.537.88 lacs against the appellant before the Arbitral Tribunal towards their outstanding dues of various natures. The appellant contested the claim of the respondent.9. By award dated 10.05.2008, the Arbitral Tribunal partly allowed the claim of respondent No.1 and accordingly awarded them a total sum of Rs.356.78 lacs. The Arbitral Tribunal also awarded 10% p.a. simple interest payable on the awarded sum (Rs.356.78 lacs) from the date of accrual of cause of action till the date of award and further awarded future interest at the rate of 12% p.a. on the awarded sum, i.e., Rs.451.49 lacs (Rs.356.78 lacs principal sum + Rs.94.71 lacs interest = Rs.451.49 lacs) payable from the date of award till recovery.10. The appellant, felt aggrieved, challenged the legality of the aforesaid award under Section 34 of the Arbitration and Conciliation Act, 1996 before the Additional District Judge, Faridabad, who by order dated 24.12.2010 partly allowed the application and modified the award accordingly.11. The appellant, felt aggrieved, challenged the order of the Additional District Judge and filed appeal before the High Court. By impugned order, the High Court dismissed the appeal and upheld the order passed by the Additional District Judge.12. Felt aggrieved, the appellant has filed this appeal by way of special leave before this Court.

Reasoning:
16. In our opinion, the submission urged by the appellant appears to be correct and hence it deserves to be accepted. As mentioned above, even the respondent could not oppose the prayer made by the appellant which appear to be more in the nature of typographical error.