Arbitration Court Reckoner :August-October 2021 (Part 2)

This is the second part of the article. Section 31 No scope for adding pre-award interest into the principal amount for calculating post-award interest by applying Section 31 of the Act when the Tribunal has only awarded post-award interest on principal sum In Overeas Drilling Limited v Directorate General Of Hydrocarbons Of India High Court of Delhi was dealing with a case where the Arbitral Tribunal had awarded post award interest only on the principal amount and the Appellant was seeking to claim post award interest on the principal as well as pre- award interest relying on S. 31 as also the judgment of the Supreme Court in Hyder Consulting Limited v Governor, State of Orissa. Arbitral Tribunal can award interest for the pre-reference period and yet deny pendente lite interest, but the said denial is required to be informed by reason In M/s Poysha Packaging Private Limited And Anr v The Oriental Insurance Co. Ltd. & Anr High Court of Delhi held that although it may be open for the Arbitral Tribunal to award interest for the pre-reference period and yet deny pendente lite interest, the same is required to be informed by reason. v M/s Cannon Engineering Construction 'Cannon Cottage' High Court of Delhi held that if the contract proscribes the Arbitral Tribunal to award preaward interest; the Arbitral Tribunal could not do so by camouflaging the same as compensation under Section 70 of the Indian Contract Act, 1872 and thus set aside the award of such compensation. Section 36 Execution petition not to be entertained prior to the expiry of the period as stipulated by S. 34 of the Act and if there is some grave exigency and some interim orders are to be sought, a petition under S. 9 can be filed by the decree holder In Gati Kausar India Ltd. v B. K. Structural Contracts Private Ltd. High Court of Delhi was dealing with a case where the execution petition had been filed and entertained prior to the expiry of period of 90 days from the date of the Award but the Executing Court had issued warrants of attachment only after expiry of the period of limitation u/s 34.