- (1.) This appeal arises out of an order dated 5th March 2019 in an application for setting aside under section 34 of the Arbitration and Conciliation Act , 1996 (hereinafter referred to as "the Act"). The award was passed on 21st July 2010. In paragraph 29 of the statement of claim, the appellant had claimed a principle sum of Rs. 7,42,64,033/- and pendente lite interest on the said sum from 30th November 2004 till 10th January 2007 at 12% p.a. The arbitrator allowed the principal claim in part but rejected the claim on account of interest. However, there were no reasons provided for not allowing the interest.
(2.) The Learned Single Judge has allowed the application on the reasoning that reasons were mandated under section 31(3) of the Act, the parties did not come under the exceptions provided thereto, and since no reasons were supplied for not allowing interest, that portion of the award was liable to be set aside under section 34 of the Act as being in conflict with the public policy of India.
(3.) The appellant has preferred this appeal on the ground that the Learned Single Judge erred in not awarding interest after having set aside the relevant portion of the award. It is contended that the Court exercising jurisdiction under section 34 of the Act had an inherent power to award interest, especially after having set aside the finding of the arbitrator disallowing interest. It is submitted that the appellant would suffer grave prejudice and serious injustice if the appellant is compelled to start the process of arbitration again after a lapse of nearly 15 years only for claiming interest; and thus, the appellant ought to be granted relief for payment of interest at such rate as the Court would deem fit.;