Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 31(7)(b) Arbitration and Conciliation Act 1996: s. 31(7)(a) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Arbitration and Conciliation Act 1996: s. 31(7)(a), 31(7)(b) – Post award interest on principal sum – Grant of – Discretion of arbitrator – On facts, arbitral award in favour of the appellant – Post-award interest fixed at the rate of 18% on the principle sum, from the date of award to the date of payment – Challenge to, by the appellant that the post-award interest of 18% pa should be granted on the total sum awarded, both inclusive of principal and pre-award interest – Single Judge held that the arbitrator had in his discretion restricted the post-award interest to the principal amount and that the court would not interfere with the exercise of discretion – On appeal, held: Abitrator has the discretion to award post-award interest on a part of the sum – There is nothing in the provision which restricts the discretion of the arbitrator for the grant of post-award interest on the part of the sum, which the arbitrator otherwise holds inherent to their authority – Discretion of the arbitrator can only be restricted by an express provision to that effect – Phrase ‘unless the award otherwise directs’ in s. 31(7)(b), only qualify the rate of post-award interest – As per s. 31(7)(b), if the arbitrator does not grant post-award interest, the award holder is entitled to post-award interest at eighteen percent – Arbitrator must exercise the discretion in good faith, must take into account relevant and not irrelevant considerations, and must act reasonably and rationally taking cognizance of the surrounding circumstances – Thus, the award of the arbitrator granting post award interest on the principal amount does not suffer from an error apparent. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2022 INSC 898 |
Petitioner | Morgan Securities And Credits Pvt. Ltd. |
Respondent | Videocon Industries Ltd. |
SCR | [2022] 9 S.C.R. 819 |
Judgement Date | 2022-09-01 |
Case Number | 5437 |
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