In Brief
The Municipal Council of Thanesar auctioned shops and disputes arose over non-delivery of possession and non-payment of interest on advance rent and security. An arbitrator awarded 7% per annum interest on these amounts. When executing courts calculated this with quarterly compounding, the Council challenged it. The Supreme Court held that the award meant simple interest, not compound interest, since the award contained no explicit direction for compounding. Decree-holders retain their statutory right to post-award interest under Section 31(7)(b), but it must be calculated as simple interest at 7% per annum. The appeal was partly allowed.
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