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CS Professional · Arbitration, Mediation and Conciliation · Preparation and Execution of Arbitral Award

Kaveri Infra and Sundaram Steel have no agreement on interest. The tribunal awards money to Kaveri Infra. Which of these is within the tribunal's power for the pre-award period?

The tribunal may include interest at a reasonable rate it considers fit, on all or part of the money, for all or part of the period from when the cause of action arose until the award is made, unless the parties have agreed otherwise.

  1. AInterest at a rate it deems reasonable on the whole or any part of the money, for the whole or any part of the period between the date the cause of action arose and the date of the awardCorrect
  2. BInterest only from the date of the notice invoking arbitration to the date of the award
  3. CInterest only at the rate fixed by the Interest Act, 1978
  4. DInterest only on the whole sum and for the entire period, with no discretion

Explanation

Section 31(7)(a) lets the tribunal, unless the parties have otherwise agreed, include interest at a rate it deems reasonable on the whole or any part of the money for the whole or any part of the period from cause of action to award date. The other options wrongly narrow this discretion.

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