Arbitration : Compound Interest Rate in Arbitral Awards
S.31 (7) of Arbitration and Conciliation Act, 1996 deals with "interest".
In the cases under Arbitration and Conciliation Act, 1996, the grant of compound interest rate stands answered in NHAI v. Oriental Structural Engineers Pvt Ltd [2018] GCtR 3619 (Delhi).
The rate of interest of 10% compounded monthly was granted and the said arbitral award was found valid and appropriate.
It was held that "when the law is clear, that the interpretation of contract is the primary task – or within the exclusive domain of an arbitral tribunal, the court cannot, by a sleight of reasoning, by saying that the reasons are contrary to the contract, upset the award."
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