Report No. 76
4.24. Present position.-
It can therefore be stated that the judgement of the Supreme Court supports the view that the arbitrator can award interest for the period from the date of award to the date of decree.
4.25. English la.- section 20 of the Act of 1950.-
In England, section 20 of the Arbitration Act of 1950 provides that1-2-"a sum directed to be paid by an award shall, unless the award otherwise directs, carry interest as from the date of the award and at the same rate as judgment debt". Further, section 44 of the Administration of Justice Act, 1970, enables the rate of interest on judgment-debts to be raised from 4 per cent. provided by the Judgments Act, 1838 (Chapter 110) by an order of the Lord Chancellor in the form of a statutory instrument.
1. Section 20, Arbitration Act, 1950.
2. See also section 44, Administration of Justice Act, 1970.
4.26. Difference between English and Indian Law.-
The difference between the English and Indian provisions lies primarily in this, that there is no power in an arbitrator in India to direct payment of interest for the post-decree period. This was laid down in two Calcutta cases1-2. In the general scheme of Indian law, it could not be otherwise, since, under section 29, the court takes charge of the matter as from the stage of the decree.
1. Pratima Swarup v. Diwan Chand, AIR 1963 Cal 583 (586).
2. Union of India v. Bungo Steel Furniture Pvt. Ltd., AIR 1963 Cal 70.
4.27. Fourth period.-
The fourth period (period after the decree) falls within section 29 and raises no problems as to the arbitrator's powers.