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 JUDGMENT 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 JUDGMENT
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03.03.2003 till it was withdrawn, the respondent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 JUDGMENT modified to the above extent. The Civil Appeals are
disposed of with no order as to costs.
New Delhi; September 28, 2015.