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Union of India (UOI) v. Ambica Construction - (Supreme Court) (16 Mar 2016)

Contract must explicitly bar pendente lite interest to prevent arbitral award

MANU/SC/0309/2016

Arbitration

An Arbitrator cannot award interest pendente lite if the same is barred expressly by contract. The Supreme Court distinguished an explicit contractual provision such as this from a bar to award interest on delayed payment, which by itself would not preclude the Arbitrator’s authority. It added, “award of pendente lite interest inter alia must depend upon the overall intention of the agreement and what is expressly excluded.”

Relevant : State of Orissa v. B.N. Agarwalla MANU/SC/0204/1997 Tehri Hydro Development Corporation Limited and Anr. v. Jai Prakash Associates Limited MANU/SC/0806/2012 Section 31 Arbitration and Conciliation Act, 1996

Tags : ARBITRATION   INTEREST   AWARD   PENDENTE LITE  

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