Victorian Consolidated Legislation

Commercial Arbitration Act 1984 - SECT 31

Interest up to making of award

31. 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 a 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 of 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 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;

   (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) Subsection (1) does not-

   (a)  authorize the awarding of interest upon interest;

   (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.