South Australian Consolidated Acts South Australian Consolidated Acts31—Interest up to making of award
(1) Unless a contrary
intention is expressed in the arbitration agreement, but subject to
subsection (4), where the arbitrator or umpire determines to make an
award for the payment of money (whether on a claim for a liquidated or an
unliquidated amount), the arbitrator or umpire shall have power to include in
the sum for which the award is made interest at such rate as the arbitrator or
umpire may direct (being a rate not exceeding the rate at which interest is
payable on a judgment debt of the Supreme Court) on the whole or any part of
the money for the whole or any part of the period between the date on which
the cause of action arose and the date on which the award is made.
(2) Unless a contrary
intention is expressed in the arbitration agreement, but subject to
subsection (4), where—
(a)
arbitration proceedings have been commenced for the recovery of a debt or
liquidated damages; and
(b)
payment of the whole or part of the debt or damages is made during the
currency of the proceedings and prior to or without an award being made in
respect of the debt or damages,
the arbitrator or umpire may order that interest be paid at such rate as the
arbitrator or umpire may direct (being a rate not exceeding the rate at which
interest is payable on a judgment debt of the Supreme Court) on the whole or
any part of the money paid for the whole or any part of the period between the
date when the cause of action arose and the date of the payment.
(3) Without limiting
subsection (2), arbitration proceedings shall, for the purposes of that
subsection, be deemed to have been commenced if—
(a) a
dispute to which the relevant arbitration agreement applies has arisen; and
(b) a
party to the agreement—
(i)
has served on another party to the agreement a notice
requiring that other party to appoint an arbitrator or to join or concur in or
approve of the appointment of an arbitrator in relation to the dispute; or
(ii)
has served on another party to the agreement a notice
requiring the other party to refer, or to concur in the reference of, the
dispute to arbitration; or
(iii)
has taken any other step contemplated by the agreement or
the law in force at the time the dispute arose, with a view to referring the
dispute to arbitration or appointing, or securing the appointment of, an
arbitrator in relation to the dispute.
(4) This section does
not—
(a)
authorise the awarding of interest upon interest; or
(b)
apply in relation to any amount upon which interest is payable as of right
whether by virtue of an agreement or otherwise; or
(c)
affect the damages recoverable for the dishonour of a bill of exchange.