In Brief
Municipal Council Thanesar auctioned shops to successful bidders (respondents) but disputes arose over delivery of completed premises and amenities. An arbitrator awarded the respondents damages and 7% per annum interest on advance rent and security. The executing court calculated this as simple interest with yearly rests; the High Court changed this to quarterly rests (compound interest). The Supreme Court held that decree-holders are entitled to statutory post-award interest benefits under the Arbitration Act, but the award's specification of "7% per annum" without mentioning compounding means simple interest only. Both pre-award and post-award interest must be calculated as simple interest at 7% per annum. Appeal partly allowed.
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