Grant of Interest
1 Power to Award Interest is subject to Agreement between the litigating parties before the Arbitrator.
2 An Award which grants Interest against the terms of the Contract may be challenged u/s 34.
3 When the Arbitral Award is silent on post-award interest, it would be payable on the sum awarded, which would include both the principal and the pre-award interest.
4 Future Interest may be awarded on the “Sum” Awarded. “Sum” includes both principal and Interest. It amounts to Awarding Interest on Interest, which is permissible.