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Head Note

The Arbitration and Conciliation Act, 1996  - Section 34

Interest Act, 1993 - Section 7 - Corporation issuing a supply order in favour of appellant - Delay by Corporation in paying the bills to the appellant - No reasonable cause shown - Appellant demanded interest on delayed payment under the Interest Act - Matter referred to Arbitration - Arbitrator directing the Corporation to pay a sum of Rs. 78,19,540.73 to the Appellant -Proceedings for setting aside the Arbitral Award - Appellant company pointed out for deposition of 75% of the Arbitral Award by the Corporation u/s 7 of the Interest Act - If challenging the arbitral award not construed as an 'appeal', the requirement of pre-deposit of interest before the buyer challenging an award passed against him, becomes a total nullity - Term "appeal" appearing in Section 7 of the Interest Act include an application under Section 34 as well - Impugned order of the High Court set aside.

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