Arbitral Tribunal's Discretion On Pre-Reference And Pendente Lite Interest Is Subject To Agreement Between Parties: Telangana High Court

The Telangana High Court ruled that an arbitral tribunal has the authority to award both pre-award and post-award interest in arbitration proceedings. This decision aligns with the principle that interest is compensatory and aims to ensure that a party is fully compensated for the time value of money lost due to delayed payments. The court emphasized that such awards are consistent with the provisions of the Arbitration and Conciliation Act, 1996. This ruling clarifies the extent of the tribunal's powers concerning interest on arbitration awards, reinforcing the importance of timely compensation in dispute resolution.