Arbitrator cannot award Pendente Lite Interest, if contract expressly bars the same: SC [Read Judgment]
9 years ago

Arbitrator cannot award Pendente Lite Interest, if contract expressly bars the same: SC [Read Judgment]

Live Law  

The Three Judge Bench of the Apex Court comprising of Justices Ranjan Gogoi, Arun Mishra and Prafulla C. Pant reiterated that if contract expressly bars award of interest pendente lite, the same cannot be awarded by the Arbitrator. The Question Referred Whether Arbitrator can award pendente lite interest when contract contains bar for grant of interest in a case covered by the Arbitration Act? Engineers-De-Space-Age case In that case, it was observed that bar under the contract to award pendente lite interest will not be applicable to Arbitrator. Grant of pendente lite interest may depend upon several factors such as phraseology used in the agreement, clauses conferring power relating to arbitration, nature of claim and dispute referred to Arbitrator and on what items power to award interest has been taken away and for which period.

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History of this topic

Interest Cannot Be Awarded By Arbitrator When Awarding Of Interest Is Prohibited In Contract: Madhya Pradesh High Court
3 months, 2 weeks ago

Interest Cannot Be Awarded By Arbitrator When Awarding Of Interest Is Prohibited In Contract: Madhya Pradesh High Court

Live Law  

The Madhya Pradesh High Court bench of Justices Sanjeev Sachdeva and Vinay Saraf has held that the tribunal has no discretion to award payment of interest when there is clear prohibition in the contract that the interest cannot be given. “In Kamatchi Amman Constructions vs. Divisional Railway Manager the Supreme Court while interpreting an identical clause in the contract subject …

Arbitrator Can Award Interest Anytime After The Award Is Passed Till Actual Payment Is Made: Uttarakhand High Court
9 months, 1 week ago

Arbitrator Can Award Interest Anytime After The Award Is Passed Till Actual Payment Is Made: Uttarakhand High Court

Live Law  

The Uttarakhand High Court has upheld an arbitration award observing that an arbitrator can award interest after the award is given till the actual payment is made. Hearing the matter, the bench comprising Chief Justice Ritu Bahri and Justice Rakesh Thapliyal directed the state to pay additional interest as awarded by the arbitrator on the total amount due from the …

When Parties Agree For No Interest Payable Till Arbitral Award Is Made, Arbitrator Bound By This Agreement: Delhi High Court
1 year ago

When Parties Agree For No Interest Payable Till Arbitral Award Is Made, Arbitrator Bound By This Agreement: Delhi High Court

Live Law  

The Delhi High Court single bench of Justice Prateek Jalan held that when parties agree that no interest shall be payable, the Arbitral Tribunal is bound by that agreement. Brief Facts: The Petitioner challenged an Arbitral Award, specifically contesting the portion wherein the Arbitrator granted interest on the Respondent's recovery claim against outstanding bills. The Arbitrator in that case awarded …

Agreement Between The Parties “Birth-Giver”; Arbitrator Can’t Grant Pre-Award Interest When Agreement Provided For No Interest: Delhi High Court
1 year, 10 months ago

Agreement Between The Parties “Birth-Giver”; Arbitrator Can’t Grant Pre-Award Interest When Agreement Provided For No Interest: Delhi High Court

Live Law  

The Delhi High Court has reiterated that the agreement between the parties has primacy over the powers of the Arbitral Tribunal to grant pre-award interest under Section 31 of the Arbitration and Conciliation Act, 1996. The court thus concluded: “Therefore, the learned Arbitrator has acted well within his power in granting an amount of INR 1.3 Crore on account of …

Arbitrator Can Award Pendente Lite Interest If There Is No Bar Under Contract : Supreme Court
2 years ago

Arbitrator Can Award Pendente Lite Interest If There Is No Bar Under Contract : Supreme Court

Live Law  

The Supreme Court recently reiterated that unless there is a specific bar under the contract, it is always open for the Arbitrator to award pendente lite interest in view of Section 31 of the Arbitration and Conciliation Act 1996. Sundresh, while adjudicating an appeal filed in Indian Railway Construction Company Limited v M/s National Buildings Construction Corporation Limited, has affirmed …

Arbitral Tribunal Can Award Interest On Security Deposit If The Clause Prohibiting Such Interest Was Not Specifically Pleaded: Madras High Court
2 years, 4 months ago

Arbitral Tribunal Can Award Interest On Security Deposit If The Clause Prohibiting Such Interest Was Not Specifically Pleaded: Madras High Court

Live Law  

The Madras High Court has held that the arbitral tribunal can award interest despite there being a contractual prohibition if no pleading as to the prohibition was made by the aggrieved party. The Court held that in the adversarial system, adjudication is carried out on the basis of pleading and evidence and a party seeking to resist a claim on …

Arbitrator Can Award Interest On Interest Under The A&C Act: Orrisa High Court
2 years, 6 months ago

Arbitrator Can Award Interest On Interest Under The A&C Act: Orrisa High Court

Live Law  

The Orissa High Court has held that the arbitrator can award separate interest on claims which are in nature of interest for delayed payment. The Bench of Justice Arindam Sinha held that bar under Section 3 of the Interest Act, 1978 does not apply interest under the A&C Act. The Court rejected the contention of the appellant that the arbitrator …

Arbitrator Has Discretion To Award Post-Award Interest On A Part Of The 'Sum': Supreme Court
2 years, 6 months ago

Arbitrator Has Discretion To Award Post-Award Interest On A Part Of The 'Sum': Supreme Court

Live Law  

The Supreme Court held that an arbitrator has the discretion to award post-award interest on a part of the 'sum'.The arbitrator has the discretion to determine the rate of reasonable interest, the sum on which the interest is to be paid, that is whether on the whole or any part of the principal amount, and the period for which payment …

Power Of Arbitral Tribunal To Award Interest Is Discretionary & Subject To Agreement Between Parties: Supreme Court
2 years, 10 months ago

Power Of Arbitral Tribunal To Award Interest Is Discretionary & Subject To Agreement Between Parties: Supreme Court

Live Law  

The Supreme Court has held that the power of the arbitral tribunal to award interest is subject to an agreement between the parties to the contrary. The Court also held that ordinarily the total amount of sum awarded on which the future interest is to be given would include the principal amount and the amount awarded as interest pendente lite. …

Weekly Digest Of Arbitration Cases: April 17 - April 23, 2022
2 years, 11 months ago

Weekly Digest Of Arbitration Cases: April 17 - April 23, 2022

Live Law  

Arbitrators Must Say Upfront Their Fees For The Number Of Sittings, Opines Supreme Court During Hearing Case Title: Oil and Natural Gas Corporation Ltd. versus Afcons Gunanusa The Supreme Court, while hearing on the issue of fixation of standards for fees for arbitrators, has emphasized on "upfront" fixation of arbitrator's fee. Right Of A Party To File Counter Claims Exists …

Arbitral Tribunal Cannot Award Interest On Interest: Delhi High Court
2 years, 11 months ago

Arbitral Tribunal Cannot Award Interest On Interest: Delhi High Court

Live Law  

The High Court of Delhi has observed that the arbitral tribunal cannot award interest on the amount of interest already granted in the award. The Award The respondent claimed damages in respect of airlifting charges and service tax and interest on all the claims. Contention of the parties The petitioner challenged the award on the following grounds: The arbitrator erred …

Government Contracts, Arbitration And Clause Barring Grant Of Interest
2 years, 11 months ago

Government Contracts, Arbitration And Clause Barring Grant Of Interest

Live Law  

Recent decision of Supreme Court in the case of Union of India vs Manraj Enterprises rendered by Division Bench has held impliedly that the previous decision of co-ordinate Bench in Union of India vs Pradeep Vinod Constructions is not a good law for not considering the three Judge Bench decision in Union of India vs Bright Power Projects Ltd and …

Arbitrator Cannot Grant Pendente Lite Interest If Contract Contains A Specific Clause Expressly Barring Payment Of Interest: Supreme Court
3 years, 5 months ago

Arbitrator Cannot Grant Pendente Lite Interest If Contract Contains A Specific Clause Expressly Barring Payment Of Interest: Supreme Court

Live Law  

The Supreme Court observed that an arbitrator cannot grant pendente lite interest if the contract contains a specific clause which expressly bars payment of interest.Such a contractual clause will not be a violation of Section 28 of the Indian Contract Act, 1872, the bench of Justices S. Abdul Nazeer and Krishna Murari observed. The Supreme Court observed that an arbitrator …

Clause Excluding Interest on Security Deposit Not a Bar on Arbitrator to Award Pendente Lite Interest: SC [Read Judgment]
6 years, 8 months ago

Clause Excluding Interest on Security Deposit Not a Bar on Arbitrator to Award Pendente Lite Interest: SC [Read Judgment]

Live Law  

The Supreme Court has held that a clause in an agreement excluding interest on security deposit does not act as a bar on the arbitrator to award pendente lite interest. The court held that Clause 16 cannot be construed as a bar on award of interest pendente lite, as it was only dealing with the arrest of interest on the …

Arbitral Award Can Straightaway Be Executed In The Court Where Assets Are Located, Without Obtaining Transfer Of Decree: SC [Read Judgment]
7 years, 1 month ago

Arbitral Award Can Straightaway Be Executed In The Court Where Assets Are Located, Without Obtaining Transfer Of Decree: SC [Read Judgment]

Live Law  

Putting at rest a difference of legal opinion between several High Courts throughout the country, the Supreme Court, on Thursday, ruled that an arbitral award can straightaway be filed and executed in the Court where the assets are located, without first obtaining a transfer of decree from the Court which would have jurisdiction over the arbitral proceedings.The Bench comprising Justice. …

Arbitrator cannot award Pendente Lite Interest, if contract expressly bars the same: SC [Read Judgment]
9 years ago

Arbitrator cannot award Pendente Lite Interest, if contract expressly bars the same: SC [Read Judgment]

Live Law  

The Three Judge Bench of the Apex Court comprising of Justices Ranjan Gogoi, Arun Mishra and Prafulla C. Pant reiterated that if contract expressly bars award of interest pendente lite, the same cannot be awarded by the Arbitrator. The Question Referred Whether Arbitrator can award pendente lite interest when contract contains bar for grant of interest in a case covered …

Awarding of 'Interest on interest' by Arbitral Tribunal, CJI says, it is impermissible; Justice Bobde and Justice Sapre say, yes it is permissible. Decoding Section 31 (7) of the Arbitration and...
10 years, 3 months ago

Awarding of 'Interest on interest' by Arbitral Tribunal, CJI says, it is impermissible; Justice Bobde and Justice Sapre say, yes it is permissible. Decoding Section 31 (7) of the Arbitration and...

Live Law  

Three Judges of the Supreme Court have delivered three Judgments on an interesting question of law. The ratio decidendi of that decision merely laid down the discretion of the arbitrator to decide the rate of interest awarded under sub- section of section 31 of the Act, 1996, on a part or whole of the award money" And after an elaborate …

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