(Prayer: This petition is filed under Section 34(2) of the Arbitration and Conciliation Act, 1996, a) to set aside the Arbitral Award dated 07.07.2022 the Arbitral Tribunal and b) to award costs of the present petition.)

1. This petition has been filed under Section 34 (2) of the Arbitration and Conciliation Act, 1996, (hereinafter referred to as "the Act"), challenging the Award passed by the sole Arbitrator dated 07.07.2022.

2. The sum and substance of the dispute between the parties is that the parties entered into an Agreement whereby the respondent will make the content ready and hand it over to the petitioner, who will broadcast the same for a period of three years in various episodes. There was no dispute with respect to the payments made for Invoice Nos. 1 to 16 and the dispute arose with respect to the amount due and payable for invoice Nos.17 to 20, to the tune of Rs.36,30,000/-.

3. The above dispute was referred to the sole Arbitrator, and during the course of proceedings, the sole Arbitrator found that even insofar as invoice No.17 was concerned, the same has been settled by the petitioner to the respondent. Ultimately, the Award passed by the sole Arbitrator confined itself to the amounts payable for Invoice Nos.18 to 20, to the tune of Rs.21,39,000/-. While awarding the said amount, the sole Arbitrator directed the petitioner to pay interest at the rate of 24% per annum from 17.06.2016 till the date of the Award, viz., 07.07.2022.

4. The above petition confines itself to the interest portion awarded by the sole Arbitrator.

5. This Court heard the learned counsel appearing on either side and perused the Award passed by the sole Arbitrator.

6. In the considered view of this Court, awarding interest at the rate of 24% per annum from 17.07.2016 till the date of the Award, is certainly exorbitant and absolutely, no reasons have been assigned as to how the sole Arbitrator fixed such a high rate of interest.

7. In view of the above, in order to bring about a solution in this matter, this Court directed the learned counsel appearing on either side to submit a memo of calculation by calculating interest at the rate of 7% per annum right through, at the rate of 9% per annum right though and at the rate of 12% per annum right through.

8. Insofar as the calculation of the interest at the rate of 7% and 9% per annum right through is concerned, the respondent was not agreeable for fixing such a low rate of interest. Hence, this Court considered the interest that was fixed at the rate of 12% per annum right through. The principal amount along with interest at the rate of 12% per annum from 17.07.2016 roughly worked out to Rs.36,79,000/- till 07.07.2022. This Court suggested that the total amount can be rounded off to Rs.35,00,000/- payable in total by the petitioner to the respondent. Hence, this Court is of the view that this amount is reasonable and it takes care of the grievance expressed by both sides.

9. In the light of the above discussions, the Award passed by the Sole Arbitrator is modified with respect to the rate of interest awarded, and this Court fixes the total amount payable by the petitioner to the respondent at Rs.35,00,000/-. Considering the fact that the dispute has been pending for nearly 10 years, this Court is inclined to direct the petitioner to pay the amount fixed by this Court within the time stipulated herein, without driving the respondents to file an execution petition.

10. In view of the above, this Original Petition is disposed of in the above terms and there shall be a direction to the petitioner to pay a sum of Rs.35,00,000/- (Rupees Thirty Five Lakhs Only) to the respondent on or before 25.03.2026.

11. Post this case “for reporting compliance” on 26.03.2026.