M/S. D. Khosla And Company vs The Union Of India

The Supreme Court addressed the issue of interest awarded under the Indian Arbitration Act, 1940, specifically under Section 14 and Section 17. The Court held that the petitioner is entitled to simple interest at 12% per annum up to the date of the award and 15% per annum from the date of the award until realization, but not on the combined total of the principal and prior interest, as the Arbitrator did not award compound interest. The Court upheld the decisions of the lower courts, affirming that interest upon interest is not permissible unless explicitly stated by the Arbitrator.