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2001 (1) TMI 916 - SC - Indian LawsWhether the arbitrator has no jurisdiction to award interest for the pre-reference period under the general law or on equitable principles although such claim may not strictly fall within the provisions of the Interest Act, 1839? Whether possession of immovable property was taken away by private treaty or by compulsory acquisition? Held that:- Appeal allowed. An arbitrator has no competence to award interest for the pre-reference period unless any of the conditions namely - (1) if the agreement between the parties entitles the arbitrator to award interest; (2) if there is a usage of trade having the force of law for award of interest, and (3) if there are other provisions of the substantive law enabling the award of interest, is satisfied. Therefore, the question formulated in the reference order is answered in the negative - the appeals are allowed in so far as the award of interest for the pre-reference period is concerned.
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