Whether the Court which is enforcing an International Arbitration Award is empowered to direct payment of interest on the amount awarded, from the date of the award till the date of payment, when the award does not contemplate payment of any interest – International Nut Alliance LLC Vs. John’S Cashew Co – Kerala High Court
Hon’ble Kerala High Court held that:
(i) The provision of Section 31 of Arbitration Act does not and cannot deal with the form and content of a foreign award.
(ii) Section 31(7)(b) cannot be indirectly introduced to a proceeding under Part II of the Act, for enforcement of a foreign award.
(iii) If the Arbitrators did not award interest despite such a provision being available under the Rules, it was for the petitioner to have approached the appropriate forum for correction of the award.
(iv) Even otherwise, the executing court cannot go behind the decree sought to be executed. The foreign award is a deemed decree and no provision for payment of interest can be read into the award/decree.
(v) Section 31(7) insofar as it prescribes the rate of interest and the right for interest, is a substantive provision applicable to domestic awards. The provisions contained in Part I cannot replace the lex arbitrai by a process of interpretation as lex fori.