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of <h1>High Court denies interest claim due to procedural lapse, awards 12% interest post-decree.</h1> <h3>M/s. Jagdish Rai & Brothers Versus Union of India</h3> The High Court rejected the claim for interest as it was not made before the Sub-Judge during arbitration proceedings and due to interim relief. The Court ... - Issues: Claim for interest in arbitration award under Section 29 of the Arbitration Act, 1940 read with Section 34 CPC.Analysis:1. The claimant sought interest on an amount awarded through arbitration, but the claim was not made before the Sub-Judge during the arbitration proceedings. The Subordinate Judge passed a decree based on the award, which was appealed in the High Court. The High Court rejected the claim for interest, stating it was not made before the Sub-Judge and because interim relief had been granted. The High Court did not consider interest post-decree. The Court highlighted four stages for interest: before arbitration proceedings, during arbitration, post-award till decree, and post-decree till realization.2. The failure to claim interest during the initial stages of arbitration proceedings disentitled the claimant for interest during those stages. However, the High Court should have considered interest post-decree. Interest under Section 34 CPC is generally granted unless there are strong reasons against it. The claimant had requested interest before the arbitrator, which was denied without reasons. The Court held that interest should have been included in the decree by the Sub-Judge or corrected later through an application to the High Court.3. Despite the claimant not appealing the Sub-Judge's order, interest can still be granted as it is a procedural matter. The Court referred to previous decisions supporting the grant of interest in such cases. The decree was modified to include a direction for payment of interest at 12% per annum from the date of the award till realization. The appeal was allowed for this modification, and no costs were awarded in this case.
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