Arbitrator Can Award Interest On Interest

Mahanadi Coalfields Ltd Vs B. S. Agrawal, Engineers and Contractors (Orissa High Court) In this case Claim nos.1 and 5 awarded were on claims for damages. The compensation was assessed as interest since damages suffered was denial of money, had to the use of respondent, by appellant. This resulted in award on the items of claim. Clause-(a) in subsection (7) of section 31 in the 1996 Act, is reproduced below. “31. (7)(a) Unless, otherwise agreed by the parties, where and insofar as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award ...