Case Note & Summary
The case involved an appeal by the Delhi Development Authority against an award passed by an arbitrator in favor of EM & EM Associates. The appellants contested the interest rate set by the arbitrator, which was 18% per annum. The Supreme Court, after hearing arguments from both sides, found no grounds to interfere with the arbitrator's order except for the interest rate. The court decided to modify the interest rate to 12% per annum, thereby disposing of the appeal without any order as to costs. The judgment emphasized the need for reasonable interest rates in arbitration awards.
Headnote
A) Arbitration - Modification of Award - Interest Rate Adjustment - Arbitration and Conciliation Act, 1996 - The court modified the arbitrator's award by reducing the interest rate from 18% to 12% per annum, finding no grounds to interfere with the rest of the order. Held that the modification was necessary to align the interest rate with prevailing standards (Paras Not mentioned).
Issue of Consideration
Whether the interest rate awarded by the arbitrator should be modified.
Final Decision
The Supreme Court modified the arbitrator's award by reducing the interest rate from 18% to 12% per annum, while upholding the rest of the order. The appeal was disposed of without any order as to costs.
Law Points
- Modification of award
- Interest rate adjustment
- Arbitration principles
