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
Share :
|