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1997 (1) TMI 517 - SC - Indian LawsWhether the arbitrator has no power to award interest in respect of pre reference period in the absence of the claimant having a right under the contract or a provision of substantive law, to get interest? Held that:- As far as pre-reference interest is concerned, in view of the settled legal position, pre- reference interest could not be awarded for the period prior to coming into force of the Interest Act, 1973 specially when the agreement between the parties did not provide for payment or interest. In other words, neither by contract nor under law was the respondent entitled to receive pre- reference interest for the period 1.6.1975 to 10.3.1981 which had been awarded to him. As far as future interest is concerned, it was within the jurisdiction of arbitrator to award the same. The appeal is allowed to the extent that the award of pre-reference interest to the sum of ₹ 68635/- is set-aside and the decree will stand modified accordingly. In CIVIL APPEAL NO. 9234 OF 1994 as the claim for interest even for the pre-reference period had arisen after the Interest Act. 1978 had came into force and, therefore the arbitrator could award interest
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