1 S.B. CIVIL MISC APPEAL NO. 2163/2007 State of Rajasthan Vs. Hodel Singh DATE OF ORDER : 30.1.2008 HON'BLE MR. GOVIND MATHUR, J. Mr. C.S. Ojha, Addl. Govt. Advocate. Mr. G.S. Rathore, for the respondent. **** While rejecting an application preferred by the State Government as per Section 34 of the Arbitration and Conciliation Act, 1996 learned District Judge, Pali refused to set aside the award passed by the sole arbitrator. While assailing validity of the same the contention of learned counsel for the appellant is that the agreement no where prescribes for grant of any interest, therefore, the arbitrator erred while awarding the interest and the appellate court failed to appreciate this position. I have examined the judgment impugned and also the award passed by the sole arbitrator. The sole arbitrator while determining the amount due also awarded the interest as per provisions of sub-section (7) of Section 31 of the Act of 1996. The appellate court also found that so far as the interest is concerned that may be awarded unless otherwise agreed by the parties if the arbitral award is for payment of money. 2 In the instant matter the award is for the payment of money and no agreement for denial of interest was between the parties, hence, as per Section 31(7) of the Act of 1996, the sole arbitrator has not committed any error. The District Judge too while rejecting the application has rightly affirmed the award. Accordingly, the appeal is dismissed. (GOVIND MATHUR),J. Jgoyal