ETERNITY FOOTWEAR LTD Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) The petitioner has filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter "the Act"), inter alia, impugning the arbitral award dated 03.11.2017 (hereafter "the impugned award") to the limited extent that the Arbitral Tribunal has awarded interest at the rate of 15% per annum on the sum of Rs. 2,96,59,810/- from 05.05.2010 till 12.12.2010.

(2.) According to the petitioner, the said interest ought to have been awarded from 18.04.2010, that is, 30 days after the receipt of the Surveyor's report. The petitioner also challenges the rate of post award interest. The Arbitral Tribunal has awarded post award interest at the rate of 9% p.a, which, according to the petitioner, is inadequate. It is contended that once the Arbitral Tribunal has found it fair to award interest at the rate of 15% in case of the delay in payment of the amount found due to the petitioner, the Arbitral Tribunal could not have whimsically reduced the same to 9% in case of post award interest.

(3.) Briefly stated, the aforesaid controversy arises in the context of the following facts: