Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1996 – s.31(7)(a) Arbitration and Conciliation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996 – s.31(7)(a) – Arbitral award – Interest on arbitral awards – Discretion vested in arbitral tribunal – Reduction of interest u/Art.142 of the Constitution – Held: s.31(7)(a) itself requires interest to be at such rate as the arbitral tribunal deems reasonable – When a discretion is vested to an arbitral tribunal to award interest at a rate which it deems reasonable, then a duty would be cast upon the arbitral tribunal to give reasons as to how it deems the rate of interest to be reasonable – Further, the arbitral tribunal would be required to apply its mind to the facts of the case and decide as to whether the interest is payable on whole or any part of the money and also as to whether it is to be awarded to the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made – In the present case, the very conduct of respondent of remaining silent for a long period disentitled him for interest during such period – A party cannot be permitted to derive benefits from its own lapses – Insofar as rate of interest is concerned, in the present case, the Arbitrator, without assigning any reasons, awarded interest at the rate of 18% p.a. for the period during which the proceedings were pending and also at the same rate after the award was made till the actual payment – Taking into consideration the conduct of the respondent in delaying proceedings at every stage which led to long pendency of the dispute, interest at all the three stages, that is pre reference period, pendent-lite and post-award period, reduced to 9% p.a. u/Art.142 of the Constitution – Constitution of India – Art.142. |
Judge | Hon'ble Mr. Justice Bhushan Ramkrishna Gavai |
Neutral Citation | 2022 INSC 1043 |
Petitioner | Executive Engineer (r And B) And Others |
Respondent | Gokul Chandra Kanungo (dead) Thr. His Lrs. |
SCR | [2022] 7 S.C.R. 309 |
Judgement Date | 2022-09-30 |
Case Number | 8990 |
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