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Informative

Grant Of Post-Award Interest U/S 31(7)(B) Of A&C Act Is Mandatory, Arbitrator's Discretion Limited To Rate Of Interest: Delhi HC

Update / Judgement Date

22 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Alternate Dispute Resolution

The Delhi High Court clarified that the grant of post-award interest under Section 31(7)(b) of the Arbitration and Conciliation Act is mandatory. The court stated that while arbitrators have discretion to determine the rate of interest, they cannot deny the entitlement to post-award interest on the awarded sum from the date of the award until payment. This ensures that successful parties in arbitration are compensated for the delayed receipt of funds.