20 October 2021, Wednesday

3 years ago

Tribunal has a substantial discretion to award interest under Section 31(7) ACA: Supreme Court of India

20 October 2021 | Punjab State Civil Supplies Corporation Limited (PUNSUP) and another v. Ganpati Rice Mills and another | SLP (C) No. 36655 of 2016 | Sanjeev Khanna & Bela M Trivedi JJ |Supreme Court of India

The arbitrator granted interest at the rate of 18% per annum from the date of the award till the date of realization. In the respondent’s set aside application, the rate of interest was reduced to 12% per annum. The respondent challenged that decision too in an appeal under Section 37 ACA. The High Court reduced the interest to 9% per annum relying on the judgement under the 1940 Act.

Restoring the rate of interest awarded by the set aside court (not challenged by the petitioner), the Supreme Court has observed that Section 31 (7) ACA a grant substantial discretion to the arbitrator in awarding interest and no reason and grounds have been given by the appellate court to reduce it.

Read the judgment here.

BACK Next

connect with us: