Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Entitlement of Decree-holders s.31(7)(a) and (b) statutory benefits Interest Arbitration and Conciliatio Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Code of Civil Procedure, 1908 (5 of 1908) Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996: s.31(7)(a) and (b) – Interest – Entitlement of Decree-holders to the statutory benefits under ss.31(7)(a) and (b) – Held: Decree-holders-respondents are entitled to post award interest in terms of s.31(7)(b) of the Act. Code of Civil Procedure, 1908: Execution of award – Interest awarded in the arbitration award – In the award, it was not specifically stated that the interest @ 7% p.a. was to be awarded with quarterly rests – In fact, the award did not specify anything; whether it was quarterly rests or yearly rests – It simply awarded interest @ 7% p.a. – Executing Court put it with yearly rests which the High Court in revisions preferred by the appellants modified to quarterly rests – On appeal, held: Both the Executing Court and the High Court completely erred and awarded compound interest in favour of the respondents when the award had stipulated it to be 7% p.a. simplicitor – The award did not even remotely suggest that such award of interest would be with a direction that interest be capitalized on yearly or quarterly basis – It was pure and simple award of interest @ 7% and could not be taken to be a direction to award compound interest – Consequently, the pre-award interest on the amounts in question shall be calculated @ 7% p.a. simple interest – Arbitration and Conciliation Act, 1996 – s.31(7)(a) and (b) |
Judge | Honble Mr. Justice Uday Umesh Lalit |
Neutral Citation | 2019 INSC 227 |
Petitioner | Municipal Council Thanesar |
Respondent | Virender Kumar Etc. |
SCR | [2019] 5 S.C.R. 829 |
Judgement Date | 2019-02-19 |
Case Number | 1751 |
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