Contractual bar on pre-award interest prevails; post-award interest allowed but rate reduced for lack of reasons.

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Full Text of the Document

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....The article addresses contractual bars to pre-award (pendente lite) interest and the scope of post-award interest under Section 31(7). It explains that an express contractual prohibition on interest prevails over an arbitral award, applying ejusdem generis to reject attempts to characterise prohibited interest as 'compensation', and concludes pendente lite awards contrary to clause-based bars are liable to be set aside. It further explains that post-award interest under Section 31(7)(b) is payable despite pre-award bars, but a tribunal's unreasoned fixation of rate may be judicially moderated; the rate awarded was reduced on that basis. Judicial interference under limited review provisions was held justified on these points.....