Question

    As per the of the Arbitration & Conciliation Act, 1996,

    what is the rate of interest that a sum directed to be paid by an arbitral award shall carry, unless the award specifies otherwise?
    A The same rate as the current rate of interest prevalent on the date of award Correct Answer Incorrect Answer
    B One per cent higher than the current rate of interest Correct Answer Incorrect Answer
    C Two per cent higher than the current rate of interest Correct Answer Incorrect Answer
    D The rate is fixed and not linked to the prevalent interest rate Correct Answer Incorrect Answer
    E The rate is determined by mutual agreement of the parties involved Correct Answer Incorrect Answer

    Solution

    Section 31(7): A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two per cent. higher than the current rate of interest prevalent on the date of award, from the date of award to the date of payment.

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