Interest Is Payable Post-Assessment, Grant Of Pre-Award Interest Is Patently Illegal: Calcutta High Court

The Calcutta High Court ruled that the pre-award interest awarded in an arbitration case was patently illegal. The case involved a dispute between Damodar Valley Corporation and Reliance Infrastructure. The court found that the arbitrator had erred in awarding interest for the period before the actual arbitration award was granted. The ruling highlights the importance of strict adherence to legal guidelines in arbitration proceedings and reinforces that interest should only be awarded in compliance with statutory provisions.