Arbitration In IndiaStatutory interest can be granted by Executing Court

September 2, 20250
State of U.P. and 2 Others v. Satish Chandra Shiv Hare-Brothers

Court – Delhi High Court

Citation – Matters under Article 227 No. – 11680 of 2023

Date – 25.08.2025

The Hon’ble Delhi High Court has held that statutory interest can be granted by Executing Court under Section 36 which may not have been mentioned in the arbitral award.

The Court held,

“10. In a recent judgment of the Delhi High Court in Union of India and Anr. v. Sudhir Tyagi 2025:DHC:2621, the Hon’ble Single Judge bench clarified that the grant of post-award interest under Section 31(7)(b) is mandatory. The only discretion which the Arbitral Tribunal has is to decide the rate of interest to be awarded. Where the Arbitrator does not fix any rate of interest, then statutory rate, as provided in Section 31(7)(b), shall apply.

11. Keeping in the view the above-mentioned judgement, the executing court under Section 36 is empowered to carry out the award with full effect, including grant of interest constituting a component of the award. The Tribunal’s determination of interest for 2000 to 2007 did not foreclose the statutory entitlement to interest for the balance period; the executing court correctly calculated interest for the period 17.12.2010 to 17.12.2022 at 18% p.a., and ordered recovery thereof.”

— Team AMLEGALS


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