2010 (9) TMI 1060 - SC - Indian Laws

Summary

Issues involved: Interpretation of arbitration award, interest calculation, challenge to Civil Court judgment.

Interpretation of arbitration award: The arbitrator's award allowed certain claims and disallowed others, along with granting interest for specific periods. The Civil Court set aside part of the award and limited interest on certain claims. Both parties challenged this decision, leading to the High Court dismissing the appeal and revision filed by the appellant. The High Court allowed the respondent's appeal in part, entitling them to interest from the date of reference to the date of award at 18% per annum.

Interest calculation: The High Court's decision on interest calculation was challenged in the Supreme Court. The Supreme Court noted that the award was governed by the Arbitration Act, 1940, and emphasized that in the absence of a specific contract regarding interest rate, pendente lite and future interest should not normally exceed 9% per annum.

Challenge to Civil Court judgment: The Supreme Court partially allowed the appeals, reducing the interest awarded from 18% to 9% per annum. The judgment of the Civil Court as modified by the High Court was upheld in all other respects.