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Supreme Court Adjusts Interest Rate in Arbitration Award The Supreme Court upheld the High Court's decision to reduce the amount awarded for escalation by the Arbitrator and declined to interfere. However, the ...
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Supreme Court Adjusts Interest Rate in Arbitration Award
The Supreme Court upheld the High Court's decision to reduce the amount awarded for escalation by the Arbitrator and declined to interfere. However, the Court disagreed with the reduction of interest by the High Court, restoring the 12% interest initially granted by the Arbitrator. The appellant was entitled to receive the modified award with 12% interest, to be paid within three months. The Court allowed the appeals on the interest issue, with no costs awarded. Additionally, the Court dismissed one special leave petition for lack of merit but granted leave and allowed the appeals in another special leave petition.
Issues: 1. Reduction of amount awarded for escalation by the Arbitrator. 2. Reduction of interest by the High Court.
Analysis: 1. The appellant raised concerns regarding the reduction of the amount awarded for escalation by the Arbitrator. The Arbitrator had awarded &8377; 1,20,000, but the High Court set it aside. The Supreme Court found the reasoning of the High Court justified and declined to interfere with the decision. The appellant's grievance on this issue was not upheld.
2. Regarding the reduction of interest, the Arbitrator had awarded 12% interest, which was reduced to 9% by the High Court. The Supreme Court disagreed with the reduction of interest and restored the interest granted by the Arbitrator. The appellant was deemed entitled to 12% interest on the modified award by the High Court. The Court directed the payment of the amount within three months, with adjustments for any amount already paid. The appeals were allowed on this issue, and no costs were awarded.
Additional Judgment: In a separate order, the Supreme Court dismissed a special leave petition after finding no merit in it. The petition was accordingly dismissed. However, in another special leave petition, the Court granted leave and allowed the appeals in terms of the signed order.
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