Delhi HC: Interest is compensatory in nature and is parasitic on the principal amount. The arbitrator is empowered to award interest despite Contractu

[Educator]

The power of Arbitral Tribunal to award interest for all the three periods namely, pre-reference, pendente lite and post award, is settled, after all. It has been held by Supreme Court, in Reliance Cellulose Products Ltd v. ONGC reported as (2018) 9 SCC 266, that interest is compensatory in nature and is parasitic on the principal amount. Following the “Reliance” ratio, it is seen that arbitrator