HLV LIMITED Vs. PBSAMP PROJECTS PVT. LTD.

JUDGEMENT

(1.) Leave granted.

(2.) This appeal by special leave is directed against the judgment and order dtd. 22/4/2024 passed by the High Court for the State of Telangana at Hyderabad (High Court) in Civil Revision Petition No. 60 of 2024 (PBSAMP Projects Private Limited Vs. HLV Limited). By the impugned judgment and order, the Division Bench of the High Court set aside the order dtd. 2/11/2023 passed by the Principal Special Court in the cadre of District Judge for trial and disposal of commercial disputes at Hyderabad (referred to hereinafter as 'the Executing Court') in CEP No. 05 of 2021 rejecting the petition filed by the respondent for enforcement of the arbitral award dtd. 8/9/2019 on the ground that respondent is not entitled to compound interest and that the amount paid by the judgment debtor (appellant) to the decree holder (respondent) i.e. Rs.44,42,05,254.00 was in full satisfaction of the award.

(3.) Question for consideration in this appeal is whether in the facts and circumstances of the case, the decree holder (respondent) would be entitled to interest upon interest in terms of Sec. 31(7)(b) of the Arbitration and Conciliation Act, 1996 or the interest awarded by the arbitral tribunal in the award dtd. 8/9/2019 in terms of the memorandum of understanding dtd. 9/4/2014 entered into between the parties i.e. between the appellant and the respondent fulfil the requirement of Sec. 31(7)(a) and (b) of the said Act?