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H
DELHI AIRPORT METRO EXPRESS PRIVATE LIMITED v. 721
DELHI METRO RAIL CORPORATION [B. R. GAVAI, J.]
H
726 SUPREME COURT REPORTS [2022] 3 S.C.R.
C 15. It could thus be seen that the part which deals with the power
of the Arbitral Tribunal to award interest, would operate if it is not
otherwise agreed by the parties. If there is an agreement between the
parties to the contrary, the Arbitral Tribunal would lose its discretion to
award interest and will have to be guided by the agreement between the
parties. The provision is clear that the Arbitral Tribunal is not bound to
D award interest. It has a discretion to award the interest or not to award.
It further has a discretion to award interest at such rate as it deems
reasonable. It further has a discretion to award interest on the whole or
any part of the money. It is also not necessary for the Arbitral Tribunal
to award interest for the entire period between the date on which the
E cause of action arose and the date on which the award is made. It can
grant interest for the entire period or any part thereof or no interest at
all.
16. We find that in the present case, the words “unless otherwise
agreed by the parties” would assume significance. The said words fell
F for consideration before this Court in the case of N.S. Nayak & Sons
vs. State of Goa2. This Court in the said case had an occasion to consider
the scope of the phrase “unless otherwise agreed by the parties” in
various provisions of the 1996 Act. This Court observed thus:
“14. … The phrase ‘unless otherwise agreed by the parties’ used
in various Sections, namely, 17, 21, 23(3), 24(1), 25, 26, 29, 31,
G
85(2)(a), etc. indicates that it is open to the parties to agree
otherwise. During the arbitral proceedings, right is given to the
parties to decide their own procedure. So if there is an agreement
between the parties with regard to the procedure to be followed
by the arbitrator, the arbitrator is required to follow the said
H 2
(2003) 6 SCC 56
DELHI AIRPORT METRO EXPRESS PRIVATE LIMITED v. 729
DELHI METRO RAIL CORPORATION [B. R. GAVAI, J.]
5
(2014) 3 SCC 92 H
732 SUPREME COURT REPORTS [2022] 3 S.C.R.
6
(1996) 6 SCC 44 H
734 SUPREME COURT REPORTS [2022] 3 S.C.R.