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PAMIDIGHANTAM SRI NARASIMHA, SANDEEP MEHTA
R. P. Garg – Appellant
Versus
Chief General Manager, Telecom Department – Respondent
Headnote: Read headnote
JUDGMENT :
PAMIDIGHANTAM SRI NARASIMHA, J.
1. Leave granted.
2. The short question before us is whether the appellant is entitled to post award interest on the sum awarded by the Arbitrator. The Arbitrator denied payment of such interest under a misplaced impression that the contract between the parties prohibited it. The executing Court1[Order in M.A No. 19 of 2001 dated 10.10.2002.] affirmed the finding of the Arbitrator and rejected the prayer. However, allowing the appeal, the District Court2[Order passed by the District Judge in Civil Appeal no.86 of 11.11.2002 dated 04.03.2003] held that the appellant will be entitled to post award interest. By the order impugned before us, the High Court3[Order dated 14.05.2019 passed by the High Court of Punjab and Haryana in Civil Revision No. 2561 of 2003] allowed the revision and set aside the District Court order while holding that the contract between the parties did not permit grant of post award interest.
2.1 For the reasons to follow, while allowing the appeal we have held that as this is a case
Post award interest – Granting post-award interest is not subject to contract between parties – Rate of interest can be provided by Arbitrator and in default statutory prescription will apply.
Arbitral awards inherently carry a statutory interest rate of 18% for post-award periods, ensuring prompt compliance regardless of parties' prior decisions.
An arbitral award's stipulations on interest must be strictly enforced as per the parties' agreement, disallowing claims for compound interest unless explicitly provided, reinforcing party autonomy i....
The Arbitral Tribunal's authority to award interest is governed by the arbitration agreement, with specific provisions for pre-award and post-award interest under the Arbitration Act.
The court clarified that post-award interest includes both principal and pre-award interest, overruling previous decisions that restricted such calculations.
(1) Interest has to be awarded as specified in contract and in absence of any contract, as per discretion of Arbitral Tribunal - Arbitral Tribunal can grant pre-reference interest from date on which ....
The main legal point established in the judgment is the determination of the applicable rate of interest on the awarded amount in an arbitration proceeding, considering the pre-amendment and post-ame....
Judicial intervention under the Arbitration Act is limited to reviewing arbitral awards for irrationality or unreasonableness, affirming the arbitrator's authority to award post-award interest and da....
(1) Post-award interest – If agreement stipulates that no interest is payable, Arbitral Tribunal cannot award interest for the period and an award contrary to terms of contract would be vulnerable to....
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