Report No. 76

4.30. Recommendation to insert new section as section 13A.-

In the light of the above discussion,1 we recommend that in order to deal with the power of the arbitrator or umpire to ward interest for the first three periods mentioned above, the following new section should be inserted in the Act:-

"13A. Power to award interest.-(1) Where and in so far as the ward is for the payment of money, the arbitrators or umpire may, if the terms of the reference so warrant, award interest on the principal sum adjudged, from the date on which such sum has become due to the date of entering on the reference, at such rate not exceeding the rate agreed and, in the absence of agreement, at such rate not exceeding twelve per cent. per annum, as the arbitrators or umpire may consider proper.

Explanation.-Nothing in this sub-section shall empower the arbitrators or umpire to award interest for which no claim if made by a party.

13A. (2) Where and in so far as the award is for the payment of money, the arbitrators or umpire may, unless a different intention is expressed in the arbitration agreement, award interest on the principal sum adjudged from the date of entering on the reference to the date of the award at such rate not exceeding the rate agreed and, in the absence of agreement, at such rate not exceeding twelve per cent. per annum, as the arbitrators or umpire may consider proper.

13A. (3) Where and in so far as the award is for the payment of money, the arbitrators or umpire may, unless a different intention is expressed in the arbitration agreement, award interest on the principal sum adjudged from the date of the award to the date on which the judgement is pronounced by the court according to the award, at such rate not exceeding the rate agreed and, in the absence of agreement, at such rate not exceeding twelve per cent. per annum, as the arbitrators or umpire may consider proper."

1. Para. 4.29, supra.