The Delhi High court held that arbitrator has the power to award interest pendente lite
Title: Punjab National Bank and Others V. Ram Murti Devi and Another
Decided on: September 15, 2023
LPA 633/2023, CM Appl. 47587/2023, CM Appl. 47588/2023, CM Appl. 47589/2023, CM Appl. 47590/2023
Corum: (Satish Chandra Sharma, C.J. AND Sanjiv Narula, J.)
Introduction
The Delhi High Court held that arbitrator has the power to award interest pendente lite, while doing so they must also act and make his award in accordance with the general law and the agreement. A division bench of Chief Justice Satish Chandra Sharma and Justice Sanjiv Narula dismissed the L.P.A. filled by Appellant..
Facts of the cases
Shri Anoop Singh joined the services of the Appellant as Home Guard on dated January 16, 1986. Unfortunately he passed away on dated January 14, 2004 while harnessing his duty. Thereafter, on dated March 03, 2004, the respondent submitted an application to the Appellant seeking of respondent 2 to the service of the Appellant on compassionate ground. Similarly, another application made in the month of April 2004.
The Appellant vide a HRD Circular No. 235 dated 07.01.2005 issued a scheme for payment of ex – gratia compensation in lieu of compassionate appointments with retrospective effect to all pending application as on 29.10.2004.
The respondent made similar application seeking the appointment on compassionate grounds on (i) 17-03-2005; (ii) 24-03-2005. In response the vide letter(s) dated (i) 30-03-2005; (ii) 26-04-2005; (iii) 05-05-2005; (iv) 24-09-2005, the Appellant inform the respondents the should apply under the ex-gratia scheme in lieu of compassionate grounds.
Courts analysis and decision
The respondent filled a writ petition praying for the direction to the Appellant under the compassionate grounds on terms of vide circular of HRD No. 09/1997 dated 20-03-1997 i.e. an scheme of appointment under compassionate ground.
Vide on dated 25-04-2008, the writ petition dismissed in default. Thereafter, an application for recall of the said order was preferred. Vide an order dated 27.07.2009, the Recall Application was allowed, and the Writ Petition was restored to its original number.
In this context the Ld. Single judge allowed the application by way of impugned judgement. The Ld. Judge saw the matter and decide that the respondent has no right to take the ground of compassionate appointment under the ground of compassionate scheme as the same has been replaced with the ex-gratia scheme during the pendency of respondents application. The Ld. Judge observed that the respondent is entitled to get the compensation under the ex-gratia scheme and further significant lapse of time of the demise of the Late Shree Anoop Singh, the Ld. Judge directed to the Appellant to also pay the interest at the rate of 6% per annum with effect from the date of filing of writ petition i.e., 30-08-2005.
On dismissing the L.P.A. of the Appellant the Delhi High Court given the reason of upholding the impugned judgement and said that a person is deprived of the use of legitimate money has right to be compensated for the deprivation, call it any name. It may be called interest, compensation or damages.
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Written by:- Aamir Hussain