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Arbitrator cannot award interest when expressly barred

In a recent judgment Union of India Vs. M/s. Ambica Construction, the issue raised before the Hon'ble Supreme Court was in regard to the power of the Arbitrator to award pendente lite interest when contract contains bar for grant of interest in a case covered by the Arbitration Act, 1940 . A Division Bench of this Court had doubted the correctness of the decisions in Board of Trustees for the Port of Calcutta v. Engineers-De-Space-Age (1996) and Madnani Construction Corporation (P) Ltd. v. Union of India and Others (2010). In view of the decision of the Constitution Bench judgment in Secretary, Irrigation Department, Government of Orissa & Ors. v. G.C. Roy (1992) and Executive Engineer, Dhenkanal Minor Irrigation Division, Orissa & Ors. v. N.C. Budharaj (D) by L.Rs. & Ors. (2001) which held that the Arbitrator had the jurisdiction and authority to award interest for pre-reference period, pendente lite and future period if there was no express bar in the contract reg...

Res Judicata - Explained - When suit barred - Order 7 Rule 11 - Limitation

Vaish Aggarwal Panchayat vs Inder Kumar & Ors on 25 August, 2015 Author: D Misra Bench: Dipak Misra, Prafulla C. Pant                                                                               REPORTABLE                         IN THE SUPREME COURT OF INDIA                         CIVIL APPELLATE JURISDICTION                         CIVIL APPEAL NO. 2089 OF 2015                   [Arising out of SLP(C) NO. 6919 OF 2008] Vaish Aggarwal Panchayat                ... Appellant           ...