S. 31(7) Arbitration | Arbitral Tribunal Has Power To Award Different Rates Of Interest For Pre-Reference & Pendente Lite Period : Supreme Court

The Supreme Court of India has delivered a significant judgment affirming the discretionary powers of arbitral tribunals to award varying rates of interest for different periods in arbitration cases. Specifically, the apex court upheld the tribunals' authority to set distinct interest rates for the pre-reference period (before the arbitration was formally initiated), the pendente lite period (during the arbitration proceedings), and the post-award period (after the arbitral award has been issued). This ruling provides clarity and reinforces the autonomy of arbitrators in determining appropriate interest rates based on the specific circumstances of each case.