Post-award interest under arbitration law cannot be excluded by contract; the statute preserves the right to interest.

Section 31(7)(b) of the Arbitration and Conciliation Act, 1996 confers a statutory right to post-award interest from the date of the award to the date of payment, and that entitlement cannot be excluded by a contractual clause prohibiting interest. The phrase "unless the award otherwise directs" in clause (b) governs the rate of interest, not the existence of the right to interest itself, while clause (a) remains subject to party agreement. A contractual term barring interest therefore cannot override the statutory mandate for post-award interest, and the contrary view based on precedent concerning pendente lite interest was inapposite.

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Issues: Whether post-award interest on the arbitral sum could be denied on the basis of a contractual clause prohibiting interest.

Analysis: Section 31(7) of the Arbitration and Conciliation Act, 1996 draws a clear distinction between pre-award and post-award interest. Clause (a) is expressly subject to the parties' agreement, but clause (b) governs the period from the date of the award to the date of payment and is not made subject to contract. The phrase "unless the award otherwise directs" in clause (b) relates to the rate of interest, not to the entitlement to interest itself. A contractual stipulation excluding interest therefore cannot override the statutory mandate for post-award interest. The contrary view taken by the High Court rested on an inapplicable precedent dealing with pendente lite interest.

Conclusion: The denial of post-award interest was unsustainable, and the appellant was entitled to interest under Section 31(7)(b) of the Act.

Ratio Decidendi: Under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996, entitlement to post-award interest flows from the statute and cannot be contracted out by the parties; any award silence or contrary contractual term affects only the rate, not the right to interest.

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