The SC held that u/s 31(7) of the Arbitration and Conciliation ...

Arbitral award sum carries 18% interest from date of award to payment unless stated otherwise - inclusive of pre-award interest.

December 20, 2024

Case Laws     Indian Laws     SC

The SC held that u/s 31(7) of the Arbitration and Conciliation Act, 1996, the 'sum' awarded by the arbitral tribunal, whether inclusive of interest or not from the date of cause of action to the date of award, would carry further interest at 18% from the date of award to the date of payment, unless the award directs otherwise. The arbitral tribunal has power to grant pre-award, pendente lite, and post-award interest. The 'sum' directed to be paid u/s 31(7)(b) is inclusive of interest pendente lite. The appellant's contention that the arbitrator became functus officio and lacked jurisdiction to issue clarification was rejected as the SC had permitted the respondent to seek clarification. The appeal was dismissed, upholding the HC order.

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