Law: Arbitration Act, 1940

Section: 28,29

(i) Arbitration Act, 1940 (X of 1940)-- —S.28--Award—Making of—Time for—Extension of—Contention that award having not been made within time fixed by court, it has no legal value-It isclear that award was not made within two months and for that purpose, an application under Section 28 was filed which was granted and two weaks time from 7.4.1985 was allowed-Umpire made award on 3.4.1985-Held: Award was made within extended period—Held further: Order of extension of time operated retrospectively validating all actions done from 10.1.1985 to 21.4.1985. (ii) Arbitration Act, 1940 (X of 1940)-- —Ss.2829--Award--Making of-Time for-Extension of-Contention that interest from date of award till payment could not have been granted by umpire—Held: An arbitrator is not authorised to grant interest beyond date of award, but if it was granted and has been made rule of court, then it shall be deemed to have been adopted by court under Section 29—Held further: This technical illegality stands cured as learned Single Judge has granted decree in terms of award-Appeal partly allowed and award/decree modified. PLD 1987 SC 393 rel. JUDGMENT Saleem Aklitur, J.- The respondent was awarded construction work by the appellant under an agreement which provided for an arbitration clause. A dispute arose between the parties whereupon the respondent filed an application under Section 20 of the Arbitration Act on 8.11.1974 which was registered as suit No.3 of 1975. It was alleged that the appellant has refused to pay Rs.15,18,613.00 and has neglected to refer the dispute to the arbitrator in terms of agreement. The respondent’s prayer for filing of the arbitration agreement and appointment of the arbitrator was granted. The appellant appointed Mr.Ghulam Mohammad .lunejo as its arbitrator while with the consent of the respondent Mr.Shamsul Arfin, the then Deputy Secretary, Home Department, was appointed as an arbitrator on behalf of the respondent. Both the arbitrators gave conflicting award. According to Mr.Ghulam Mohammad Junejo the respondent was entitled to Rs.25,380.90 while Mr.Shamsul Arfin awarded Rs. 13,38,700.14 with interest at the rate of 12% from the date of award till payment. The…

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