FIRST LAW

SUPREME COURT OF INDIA | Arun Mishra, S. Abdul Nazeer & M.R. Shah, JJ. M/s. Shahi and Associates v. State of U.P. C.A. No. 3559 of 2010 08-08-2019 The Arbitration and Conciliation Act, 1996 - Section 31 (7) (b) - The Uttar Pradesh Civil Laws (Reforms and Amendment) Act, 1976 - Section 24 - Reduction of the Interest - Reduced the statutory interest to 6% p.a. from 18% p.a. as awarded by the Arbitrator - The interest awarded by the Arbitrator in accordance with Section 31(7)(b) of the Act of 1996 is restored. In the instant case, though the agreement was earlier to the date of coming into force of the Act of 1996, the proceedings admittedly commenced on 27.10.1999 and were conducted in accordance with the Act of 1996. If that be so, para 7­A of Section 24 of the U.P. Amendment Act has no application to the case at hand. Since the rate of interest granted by the Arbitrator is in accordance with Section 31(7)(b) of the Act of 1996, the High Court and th...