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Issues: Whether the arbitrators had the power to award interest for the pre-reference, pendente lite and post-award periods, and whether denial of such interest to the appellant while allowing it to the respondent could be sustained.
Analysis: The governing law recognises that an arbitrator has competence to award interest for the period before reference, during the pendency of the arbitration, and after the award, subject to the agreement not prohibiting such grant and the rate being reasonable. The principle is consistent with the rule that a party deprived of money legitimately due is entitled to compensation for that deprivation, and with the need to avoid multiplicity of proceedings. The Court also noted that the same benefit of interest had been left undisturbed in relation to the respondent's counterclaim, and that similarly situated parties could not be treated differently without resulting discrimination. The orders of the courts below were therefore inconsistent with the settled legal position.
Conclusion: The denial of pendente lite and future interest to the appellant was unsustainable, and the appellant was entitled to restoration of the arbitral award with interest as granted by the arbitrators.
Final Conclusion: The appeal succeeded and the arbitral award was restored with interest, with costs throughout against the respondent.
Ratio Decidendi: Where the arbitration agreement does not prohibit it, an arbitrator may award reasonable interest for the pre-reference, pendente lite and post-award periods, and such entitlement cannot be denied to one party when similarly situated relief is sustained for the other side.
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