New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    According to Section 31(7b) of the Arbitration and

    Conciliation Act, an arbitral award directing a sum to be paid shall carry interest from the date of the award to the date of payment at a rate that is_____________
    A The same as the current rate of interest prevalent on the date of the award Correct Answer Incorrect Answer
    B One percent higher than the current rate of interest prevalent on the date of the award Correct Answer Incorrect Answer
    C Two percent higher than the current rate of interest prevalent on the date of the award Correct Answer Incorrect Answer
    D Three percent higher than the current rate of interest prevalent on the date of the award Correct Answer Incorrect Answer
    E Four percent higher than the current rate of interest prevalent on the date of the award Correct Answer Incorrect Answer

    Solution

    Section 31(7b) of Arbitration and Conciliation Act -  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.

    Practice Next