No pre-award or pendente lite interest, even as compensation, when contract bars it; SC upholds post-award interest
The Arbitral Tribunal was justified in awarding post-award interest, but the rate of interest required modification.
Pendente lite Interest
Unravelling the Conundrum Behind the Interpretation of Interest Clauses vis-à-vis the Arbitrator’s Power to Award Interest
by Dinesh Babu Eedi*, Parth Agrawal** and CL Minati***
Arbitrator can award pre-reference & pendente lite interest even when agreement is silent on award of interest or does not specifically prohibit it: SC
The Court has affirmed the power of the Arbitrator to grant pre-reference, pendente lite, and post-award interest on the rationale that a person who has been deprived of the use of money to which he is legitimately entitled has a right to be compensated for the same.
Ori HC | Party to arbitration agreement not entitled to pre reference and pendente lite interest, in absence of provision regarding the same in arbitration agreement
Orissa High Court: Biswanath Rath, J. dismissed an arbitration appeal filed under Section 37(1) of the Arbitration and Conciliation Act, 1996. The