U.O.I & Anr vs M.P Trading & Investment Rac. Corp. Ltd

The Supreme Court held that under Section 34 of the Arbitration and Conciliation Act, 1956, the deposit of the award amount in court extinguishes the liability for post-award interest from the date of deposit. The Court clarified that the High Court erred in directing interest at 18% p.a. beyond the date of deposit, affirming that interest is due only from the date of the award until the principal was deposited. The judgment of the High Court was modified accordingly, allowing interest on the balance amount not deposited as per the award.