Arbitration Act, 1940, Section 29

Arbitration Act, 1940—Section 29—Power of arbitrator to award interest pendent elite—Where the agreement between the parties does not prohibit grant of interest and where a party claims interest and the said dispute is referred to the arbitrator, he shall have the power to award interest pendent elite—In such a case, it must be presumed that interest was an implied term of the agreement between the parties—However, this does not mean that in every case, the arbitrator should necessarily award interest pendente lite—It is a matter within his discretion to be exercised in the light of all the facts and circumstances of the case, keeping the ends of justice in view.