Arbitration and Conciliation Act, 1996 – Section 31(7), 37 – Arbitration – Interest for pre reference period – Arbitration Tribunal stipulating that interest for the period would be leviable not merely on the principal amount as awarded but also upon the said amount inclusive of the amount of interest relating to the “pre-reference/past period”. Held: The AT has thus clearly committed a manifest illegality in proceeding to include the amount of interest determined as payable for the pre-reference/past period to be added to the principal amount. In terms of the statutory scheme underlying Section 31(7) of the Act, the principal amount remains static and as determined by the AT. Interest on the same is thereafter open to be prescribed to be payable in terms of Clauses (a) and (b) of Section 31(7) of the Act. That interest, as we have held above, would commence from the date when the cause of action arose and would run up to the date when the AT rendered the Award. Sayeed Ahmed and Company vs. State of Uttar Pradesh and Others[(2009) 12 SCC 26] relied upon – Arbitration direction under challenge set aside. (Para 3)
DELHI HIGH COURT
2023 STPL(Web) 6 Delhi
National Projects Constructions Corporation Ltd. Vs. M/S Interstate Construction
FAO(OS) (COMM) 175 of 2021-Decided on 1-8-2023
https://stpllaw.in/wp-content/uploads/2023/08/2023-STPLWeb-6-Delhi.pdf
