Default interest / General principles of law / Starting date of computation / Rate of interest, determined according to the currency of the invoices made and damages suffered.

In this arbitration, the arbitrator decided to apply 'the general principles of law on the substance of the dispute'. 'These general principles', the arbitrator stated, 'are in the present case understood as being the common rules of interpretation of contracts and contractual obligations. All assertions of Defendant based on Indian law will nevertheless be taken into consideration, as it is very improbable that Indian Law in any way contravenes such principles.'

'Claimant [a Belgian company] further asks for default interest on the above amount. There is no doubt that the invoice of... 1985 being a monthly invoice exigible according to the contract, without need of special notice was handed to the Chairman of the defendant company on that same day, so that Defendant's obligation to pay it and his consequent default arose then. Default interest must therefore be awarded from ... 1985, to the actual date of payment.

Claimant does not specify in his claim the rate of the interest requested. The invoice having been nevertheless formulated in Belgian francs and damages suffered by Claimant in the same currency, it seems reasonable to the arbitration tribunal to award interest according to the Belgian legal rate, this one being 10% per annum up to 1986 and 8% per annum from 1986 thereafter.'