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***
pre-reference interest
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.