Arbitration award – Purpose of granting post-award interest is to ensure that the award-debtor does not delay the payment of the award -- With the proliferation of arbitration, issues involving both high and low financial implications are referred to arbitration -- Arbitrator takes note of various factors such as the financial standing of the award-debtor and the circumstances of the parties in dispute before awarding interest -- Discretion of the arbitrator can only be restricted by an express provision to that effect -- Clause (a) subjects the exercise of discretion by the arbitrator on the grant of pre-award interest to the arbitral award -- However, there is no provision in the Act which restricts the exercise of discretion to grant post-award interest by the arbitrator -- Arbitrator must exercise the discretion in good faith, must take into account relevant and not irrelevant considerations, and must act reasonably and rationally taking cognizance of the surrounding circumstances.
(SC) Decided on : 01.09.2022
