Arbitrator has Substantial Discretion in Awarding Interest U/s. 31(7)(a) of Arbitration Act: SC

Punjab State Civil Supplies Corporation Limited (Punsup) & Anr. Vs Ganpati Rice Mills & Anr. (Supreme Court of India)

The issue in the present appeal is limited to rate of interest.

The Arbitrator had granted interest at the rate of 18% per annum from 01.01.2003 till the date of realization.

On consideration of the objections under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) filed by the respondent(s), the rate of interest was reduced to 12% per annum.

In the first appeal preferred by the respondent(s) before the High Court, vide the impugned order dated 22.07.2016, the rate of interest has been reduced to 9% per annum.

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