1989 INSC 0369
                                                    State of Orissa

                                                           Vs

                                                       J. P. Lath

                                          Civil Appeal No. 4388 of 1986

                                          (L. M. Sharma, J. S. Verma JJ)

                                                      07.08.1989

                                                     JUDGMENT

SHARMA, J. -

1. This appeal by special leave arises out of the judgment of the Orissa High Court in an appeal
under Section 39 of the Arbitration Act.

2. On reference of a dispute to an arbitrator in 1977 an award was made and filed in court. The
appellant raised several objections to the prayer of the claimant for making it a rule of the court. It
was inter alia contended that the award was illegal as it was not supported by reasons. This question
now stands concluded against the appellant by the judgment of Bench of five Judges, in the case of
Raipur Development Authority v. M/s Chokhamal Contractors ((1989) 2 SCC 721). So far the other
questions are concerned, they have been rightly rejected by the High Court and it is not necessary to
discuss them any further. The only point which survives is with respect to the grant of interest in the
award. The case arose before the coming in force of the Interest Act, 1978, and in view of the
decision of this Court in Executive Engineer (Irrigation) Balimela v. Abhaduta Jena ((1988) 1 SCC
418), the arbitrator had no jurisdiction to allow the interest as has been done. The award is,
therefore, modified to that extent. Subject to the above, the decision of the Hight Court is
confirmed. Accordingly, the appeal is allowed in part. The parties are directed to bear their own
costs.

</html