Delhi High Court Enforces Arbitral Awards Worth $192,250 with 9% Interest

The High Court of Delhi ruled in favor of the applicant, enforcing arbitral awards totaling US $1,04,000 and US $88,250 under section 36 of the Arbitration and Conciliation Act. The court determined that interest at 9% per annum was payable by the respondent from 27-12-1995 till 31-3-1998, as per the Arbitral Tribunal's awards. The court clarified that it could not modify the award but could interpret it. The respondent was granted 15 days to obtain permission for foreign currency payment. The execution petitions were disposed of with costs to the decree holder.

---

---

Issues:
1. Execution/enforcement of arbitral award under section 36 of the Arbitration and Conciliation Act, 1996.
2. Calculation and payment of interest on the awarded amount.
3. Interpretation of the arbitral award regarding the payment of interest.
4. Jurisdiction of the executing court to correct errors in the arbitral award.

Analysis:
1. The applicant filed applications under section 36 of the Arbitration and Conciliation Act seeking enforcement of arbitral awards totaling US $ 1,04,000 and US $ 88,250. The awards were final and binding on the parties as no objections were raised against them.

2. Disputes arose regarding the payment of interest on the awarded amounts. The applicant sought interest at 9% per annum from 27-12-1995 till the date of payment, while the respondent argued that interest should only be paid till 31-3-1998, citing a statutory fiction treating the award as a decree from that date. The Arbitral Tribunal had awarded interest at 9% per annum till the date of payment or decree, whichever is earlier.

3. The Arbitral Tribunal's award language indicated that interest payment was based on the old Arbitration Act, which allowed for interest from the date of the decree till payment. The executing court cannot modify the award but can interpret it. The applicant did not utilize the provision under section 33 to correct or interpret the award, which could have clarified the interest payment terms.

4. The court held that interest at 9% per annum was payable by the respondent from 27-12-1995 till 31-3-1998, as per the awards of the Arbitral Tribunal. The respondent requested 15 days to obtain permission from the Reserve Bank of India for payment in foreign currency, which was granted. The execution petitions were disposed of with costs to the decree holder.

This detailed analysis covers the issues of execution/enforcement, interest calculation, award interpretation, and court jurisdiction regarding errors in the arbitral award as per the judgment of the High Court of Delhi.

---