Arbitral Tribunal Cannot Award Interest On Interest: Delhi High Court
Live LawThe 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 in allowing the claims of the respondent with respect to the airlifting charges as the same were conditional upon the respondent producing evidence for the same and in absence of its failure to adduce evidence regarding the cost it incurred for airlifting the equipment, the claims were liable to be rejected. The Court held that the tribunal erred in allowing the claim of the respondent with respect to further interest on the amount of interest already allowed in relation to the other claims.