Tehno-Impex v. Gebr. Van Weelde Scheepvaartkantoor BV - Lord Denning, M.R., Lord Justice Watkins and Lord Justice Oliver (dissenting) - C.A. - Mar. 12, 1981

Arbitrators’ power to award interest - Court of Appeal decision

The Court of Appeal has held that arbitrators in the City of London have a wide discretion to award interest whenever it is just and equitable to do so. They are not bound by the strict rules of common law courts or of the statutes applicable to them. Those rules are rules of practice only and do not govern the practice of arbitrators. The discretion covers the rate of interest and the period for which it should be allowed, no matter whether the principal sum is paid before or after the arbitration has started, or before or after the award is made. The Court thought that arbitrators would rarely allow interest when the principal sum has been paid before the arbitration has started, and the claim is for interest simpliciter without any other claim or cross-claim.