19 January 2016
Supreme Court
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NATIONAL HIGHWAYS AUTHORITY OF INDIA Vs M/S NCC KNR JV

Bench: DIPAK MISRA,UDAY UMESH LALIT
Case number: C.A. No.-006158-006158 / 2013
Diary number: 19065 / 2013
Advocates: M. V. KINI & ASSOCIATES Vs


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Non-Reportable

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

  I.A. Nos. 4 & 5  

IN  

CIVIL APPEAL NO. 6158 OF 2013

NATIONAL HIGHWAYS AUTHORITY OF INDIA       ……Applicant/                                                                                       Appellant

Versus

M/S NCC- KNR (JV)                                 …. Respondent

  O R  D E R  

Uday Umesh Lalit J.

1. These  Interlocutory  Applications  arise  out  of  Civil  Appeal

No.6158  of  2013  which  was  disposed  of  by  this  Court  on

24.4.2015.  While  allowing  said  appeal  preferred  by  National

Highways Authority of India, the appellant herein, it was directed

by this Court as under:- “  In our view, the Arbitral Tribunal went beyond the scope  of  the  contract  and  it  clearly  exceeded  its jurisdiction. We, therefore, set aside the award insofar as  it  allows  Claim  No.  8.  Consequently,  the  appeal

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stands allowed.  At  the interim stage,  this  Court  had directed  the  Appellant  to  deposit  a  sum  of Rs.70,65,039/- which upon deposit was withdrawn by the Respondent on furnishing a bank guarantee. The appellant is entitled to encash that bank guarantee to recover the sum that was deposited.  No order as to costs.”

2. Soon thereafter Interlocutory Application No.3 of  2015 was

filed on behalf of the respondent, which was disposed of by this

Court  by  its  order  dated  8.5.2015,  which  order  was  to  the

following effect:-

“Mr.  Amit  George,  leaned  counsel  appearing  for  the applicant-respondent  shall  pay  to  the  petitioner, National  Highways  Authority  of  India  and,  therefore, the bank guarantee in question need not be encashed. He  undertakes  that  the  respondent  shall  make  the payment to the applicant within four weeks from today. The said amount shall be paid by way of a bank draft drawn on a nationalized bank. If the amount is not paid within the stipulated period, the bank guarantee shall be encashed forthwith by the petitioner.

I.A. No. 3 of 2015 stands disposed of accordingly.”

3. Accordingly,  the  respondent  made  over  the  amount  in

question  within  the  time  stipulated  under  the  order  dated

08.05.2015.  Interlocutory  Application  No.4  of  2015  was

thereafter  preferred  by  the  appellant  contending  that  the

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decretal amount was withdrawn by the respondent in December

2012 whereas the appeal was allowed in favour of the appellant

on 24.4.2015 and that the respondent had reaped the benefits of

decretal  amount for  more than three years.   It  was submitted

that the Arbitral Tribunal had awarded interest @ 12% per annum

against the appellant and that the respondent be directed to pay

interest @ 12% per annum on the amount of Rs.70,65,039/- from

the date of withdrawal till the date of actual payment.

4. The  appellant  is  right  in  its  submission that  the Arbitral

Tribunal in its award dated 09.01.2012 had awarded interest at

the rate of 12% per annum on amounts  awarded under various

claims. Matter in issue in Civil Appeal No.6158 of 2013 pertained

only  to  Claim  No.8.  In  the  fitness  of  things,  the  appellant  is

certainly  entitled  to  interest  at  the same rate  on the amount

which was enjoyed by the respondent.  The entitlement of  the

respondent to this amount stood negated by judgment and order

dated 24.04.2015 and as such the respondent must pay back the

amount with interest at the same rate.

5.  We therefore,  direct that the respondent shall pay interest

at the rate of 12% per annum on the amount in question namely

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Rs.70,65,039/- from the date of withdrawal till the amount was

made over by the respondent to the appellant.  Such payment

shall  be  made  within  six  weeks  from  today.   Interlocutory

Application Nos.4 and 5 stand disposed of accordingly.

……………………….J              (Dipak Misra)  

..………………………J.            (Uday Umesh Lalit)

New Delhi January 19, 2016

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ITEM NO.1A-For Order          COURT NO.10             SECTION XIV                S U P R E M E  C O U R T  O F  I N D I A                        RECORD OF PROCEEDINGS I.A. 4 & 5 in Civil Appeal  No(s).  6158/2013 NATIONAL HIGHWAYS AUTHORITY OF INDIA               Appellant(s)                                 VERSUS M/S NCC KNR JV                                     Respondent(s)

Date : 19/01/2016 These applications were called on for pronouncement of ORDER today. For Appellant(s)  Mr. T.S. Sidhu, Adv.

Ms. Gunjan S. Jain, Adv.  Mr. Vivek Oriel, Adv.  Mr. Vikas Soni, Adv.

                    For M/s. M. V. Kini & Associates                 For Respondent(s)                      Mr. R. Sathish,Adv.                     

Hon'ble  Mr.  Justice  Uday  Umesh  Lalit  pronounced the order of the Bench comprising Hon'ble Mr. Justice Dipak Misra and His Lordship.

I.A. Nos. 4 and 5 are disposed of in terms of the signed non-reportable order.    Pending application(s), if any, stand(s) disposed of. (VINOD KUMAR) COURT MASTER

(MALA KUMARI SHARMA) COURT MASTER

  (Signed Non-Reportable order is placed on the file)