Case Law Analysis
|Delhi High Court
Section 34 Arbitration Act | Interest on Unlawfully Encashed Performance Bank Guarantee Is Recoverable as Part of Restitution, Not Separate Claim : Delhi HC
The Delhi High Court has ruled that when a Performance Bank Guarantee is encashed in breach of an interim stay, any interest accrued on the encashed amount must be returned alongside the principal as integral to the remedy for unlawful enrichment. This clarifies that interest is not a standalone claim but part of the restitution owed under Section 34, reinforcing the arbitrator’s power to restore parties to their pre-breach position.