EXECUTIVE ENGINEER IRRIGATION GALIMALA & ORS. A vs ABAADUTA JENA

The Supreme Court addressed whether an arbitrator, appointed without court intervention, can award interest prior to the reference and during arbitration. The Court held that while the Interest Act of 1978 allows arbitrators to award interest up to the date of proceedings, it does not permit pendente lite interest as Section 34 of the Civil Procedure Code applies only to arbitrations in suits. The Court clarified that if the arbitration agreement allows for interest or if trade usage applies, the arbitrator may award interest accordingly.