Alerts & Updates

ELP Arbitration Update

Litigation, Arbitration & Dispute Resolution | Jun 29, 2018

This week, we have analyzed the Bombay High Court’s judgment in Do-It Computer JV v. The Municipal Corporation of Greater Mumbai.

In the present case, while an award granted interest on amounts payable under three claim heads, it did not grant interest on the amount payable under the fourth claim head. The question was whether in view of Section 31(7)(b) of the Arbitration and Conciliation Act, 1996 (“Act”) interest was mandatorily payable on the amount under the fourth head, especially because the award did not expressly deny interest. The High Court refused to grant interest on the amount payable under the fourth head. It held that from a reading of the award it appeared that the arbitrator was clear in his mind not to grant interest. It concluded that in the circumstances of the case, Section 31(7)(b) of the Act was not applicable.