In Brief
An arbitrator awarded Rs. 21,56,745 with 12% simple interest per annum from completion of work until the award date, and 15% per annum thereafter. The claimant sought to recover additional interest, arguing the 15% should apply to the principal amount plus the pre-award interest combined. The Supreme Court held that absent explicit contractual or statutory authorization, courts cannot award compound interest or interest upon interest. The award's language clearly directed interest only on the principal amount awarded for each separate period. Accordingly, the Court dismissed the petition, upholding the concurrent views of the two courts below that simple interest was due only on the principal sum.
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