Save on Post Award Interest in Challenge Proceedings by Depositing the Award Amount in Court
7 Pages Posted: 31 Dec 2013 Last revised: 20 Jul 2015
Date Written: February 23, 2013
In HP Housing & Urban Development Authority v. Ranjit Singh Rana, the Indian Supreme Court had to decide whether a party could challenge the award under the Arbitration and Conciliation Act, 1996 and at the same time save on the post-award interest in case the challenge proceedings ultimately fail by depositing the award amount in the court. The court held that deposit of the award amount in the court amounted to payment to the Respondent in the challenge proceedings and hence, the party challenging the arbitral award was not obligated to pay post-award interest in case the challenge proceedings ultimately failed. The decision does not lay down the correct law as it overlooks the objective of awarding interest- to compensate a party for the use of the award amount that was unlawfully retained by the other party.
Keywords: Arbitration and Conciliation Act, 1996, Challenge, Interest, Arbitration, Interest as Damages, Supreme Court of India
JEL Classification: J52, K41, K39
Suggested Citation: Suggested Citation