State Of Haryana & Ors vs M/S S.L.Arora & Company

The Supreme Court addressed the issue of interest calculation under Section 31(7) of the Arbitration and Conciliation Act, 1996, clarifying that while interest on the principal amount is permissible, interest on interest is not allowed unless explicitly provided in the award. The Court upheld the Executing Court's decision to modify the amount claimed by the respondent, affirming that the calculation of future interest should include accrued interest up to the date of the award. The appeal by the appellants was dismissed, confirming the revised amount due as per the execution petition.