JUDGMENT M.R.Verma, J. (Oral): This order is meant to dispose of the following question, which arises for determination in this Execution Petition: Whether the DH is entitled to interest on the awarded amount. If so, at what rate? 2. The relevant and material facts giving rise to the aforesaid question are that the DH has moved the execution petition for realisation of the amount awarded to it by the arbitrator vide award dated 8.10.1998. As per the said award, the arbitrator has awarded Rs. 2, 23, 660/- + interest thereon with effect fro m 1.9.1996 till 8.10.1998 i.e. the date of award in favour of the DH. While seeking execution of the award, the DH has claimed interest on the awarded amount @ 18% per annum from the date of award onward. The respondent JD contested the claim of the DH for interest on the ground that the arbitrator has not awarded any interest on the awarded amount after the date of the award, therefore, the DH is not entitled to such interest. 3. I have heard the learned counsel for the DH and the learned Additional Advocate General for the respondent - State. 4. Sub section (7) (a) and (b) of section 31 of the Arbitration and Conciliation Act, 1996, which deals with interest in arbitral cases, provide as follow: “(7) (a) Unless otherwise agreed by the parties, ‘where and in so far as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made interest, at such rate as it deems reasonable, on the whole or any part of the money for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made. (b) A sum directed to be paid by an arbitral award shall unless the award otherwise directs, carry interest at the rate of eighteen per centum per annum from the date of the award to the date of payment." 5.
(b) A sum directed to be paid by an arbitral award shall unless the award otherwise directs, carry interest at the rate of eighteen per centum per annum from the date of the award to the date of payment." 5. It is clear on a bare reading of the aforesaid provisions that sub section (7) (a) (supra) empowers the arbitrator to include interest in the awarded amount at such rate as deemed reasonable on the whole or any part of the awarded principal amount for whole or any part of the period between the date on which the cause of action arose and the date on which the award is made. Thus the arbitrator can award interest on the principal amount awarded by him at a rate which he deems reasonable for the period between the accrual of cause of action and the date of the award. It is also clear that unless there are contrary directions in the award the amount payable under the arbitral award will carry interest @ 18% per annum from the date of award to the date of payment by virtue of the provisions of sub section 7(b) supra. 6. In the case in hand, the arbitrator had neither specifically declined to award interest on the awarded amount from the date of award till the date of payment nor he has awarded such interest at any other rate. Therefore, by virtue of the provisions of sub section 7(b), the DH is entitled to recover interest on the awarded amount @ 18% per annum from the date of award till the date of payment. The above question is accordingly decided. -