Rajendra Babu, J. - (1.) This appeal arises out of certain arbitration proceedings between the parties to this appeal resulting in an award made on February 29, 1988. The Arbitrators by their award directed that the appellant shall pay to the respondent as follows:"(i) US $ 1004.50 being interest on US $ 40, 102.97 at 12% p.a. from 10-12-1985 to 16-4-1986. (ii) US $ 59,583 being interest on US $ 3,12,011.00 at 12% p.a. from 3-5-1983 to 5-11-1984."
(2.) On these two items of claim the Arbitrators also awarded interest at 12% per annum from the date of award till realisation. The award so made by the Arbitrators was filed into the Court. Objections filed thereto stood dismissed and decree was passed in terms of the award. Against that order made by the learned single Judge in his original jurisdiction an appeal was carried to a division bench which also dismissed. Hence this appeal.
(3.) Shri B. Datta, learned senior counsel for the appellant, contended that what was awarded by the Arbitrators in respect of the two claims referred to earlier in the course of this order is itself interest for different periods. He, therefore, submitted that Arbitrators could not have further awarded interest on the claims awarded at 12% per annum from the date of award till realisation. He did not dispute, and very fairly and correctly, that the Arbitrators do have the power to grant interest on the amount claimed in the arbitration and the power of the Arbitrators was very characteristically described by him as 'before, during and after' of the arbitration proceedings. His point is that there cannot be interest upon interest when the claim itself is one of interest and interest upon that amount could not have been granted by the Arbitrators and relied upon Section 3 of the Interest Act.;