Tribunal had power to award interest, the
award could not be interpreted as awarding interest upon interest, unless the
arbitral tribunal expressly awards interest upon ... power of the arbitrator to award interest for pre-award period,
interest pendent lite and interest post-award period is not in dispute.
Section
power of the arbitrator to award interest for pre-award period,
interest pendent lite and interest post-award period is not in dispute.
Section ... interest should be
awarded; (ii) whether interest should be awarded on whole or part of the
award money; and (iii) whether interest should be awarded
while dealing with
or awarding pre-award interest. Where the contract does
not prohibit award of interest, and where the arbitral award
is for payment ... interest. Similarly, post-award
interest is to ensure speedy payment in compliance of the
award. Pre-award interest is at the discretion of Arbitral
Tribunal
parties referred to an
agreement containing a prohibition against the arbitral tribunal to
award interest.
SLP (C) Nos. 32849 – 32850 of 2025 Page ... submitted that having regard to the nature of
the arbitral functions to award interest both under Sections 31(7)(a)
and 31(7)(b) being
power to grant (i) pre-award (ii) pendente lite (iii) post-award
interest. Intention behind awarding pre-award interest is
primarily to compensate the claimant ... power to award interest upon
interest or compound interest either for the pre-award period or
for the post-award period, the Bench concluded
power to award interest upon interest or compound interest
either for the pre-award period or for the post-award period.
It was held thus ... award interest.
It has a discretion to award the interest or not to award.
It further has a discretion to award interest at such rate
power of the tribunal to award ‘interest on interest’ or
compound interest. The proposition on ‘interest on
interest’ was made only ... interest should be awarded; (ii) whether
interest should be awarded on whole or part of
the award money; and (iii) whether interest
should be awarded
awarded interest up to the date of the award, as the
agreement between the parties barred payment of interest.
The bar against award of interest ... award
is made.
(b) A sum directed to be paid by an arbitral award shall,
unless the award otherwise directs, carry interest at the rate
award for calculating the post-award
interest. The principles relating to award of
interest in general are thus no different for courts
and arbitral tribunals ... parties while dealing with or
awarding pre-award interest. In the absence of
prohibition to awarding interest, the arbitral
tribunal can award interest in accordance
interest to be awarded
by the Arbitral Tribunal. In other words, if the Arbitral
Tribunal has awarded post-award interest payable from
the date ... arbitration award
15
is silent on post-award interest, in which event the award-holder is entitled to a
post-award interest of eighteen percent
