Under Section 31(7)(b), where an arbitral award directs payment of mon…

Question

Under Section 31(7)(b), where an arbitral award directs payment of money, the sum, unless the award otherwise directs, shall carry interest at the rate of:

Accepted Answer

B. {'text': 'Two per cent higher than the current rate of interest prevalent on the date of award, from the date of award to the date of payment', 'label': 'B'}

1. Section 31(7)(b) of the Act, post-2015, prescribes a default rate for post-award interest.
2. "A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of **two per cent higher than the current rate of interest** prevalent on the date of award, from the date of award to the date of payment."
3. The phrase "current rate of interest" has the same meaning as in clause (b) of Section 2 of the **Interest Act, 1978**.
4. The tribunal may also include pre-award interest in the awarded sum under Section 31(7)(a).
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 13 (Arbitration and Conciliation Act, 1996), pp. 314-333._

Answer

{'text': 'Twenty per cent simple interest from the date of award to the date of payment in every case regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'A'}

Answer

{'text': 'Twelve per cent compound interest from the date of award to the date of payment in every case regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'C'}

Answer

{'text': 'Eighteen per cent simple interest from the date of award to the date of payment in every case regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'D'}