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2021 (4) TMI 1329 - SC - Indian LawsOver entitlement of the Appellants to receive interest on delayed payment on the subject-heads, which were to be paid by the employer in local currency as per the stipulations in the said agreement - HELD THAT:- The High Court in the appeal concurred with the Arbitration Court and concluded that omission to include the rate of interest in the bid document, the "appendix to bid" to be specific, had resulted in creation of contractual term that there would not be any claim for interest on delayed payment (as per Clause 60.8) so far as payment in local currency component contained in the agreement is concerned. The underlying principle guiding award of interest is that interest payment is essentially compensatory in nature. But as it is already observed, interest on delayed payment formed part of the contract itself. The agreement did not contain any express exclusion Clause on payment of interest on delayed payment whether on component of payment in foreign currency or local currency - The Appellate Court's rationale that such blank interest column might have had resulted in acceptance of the bid of the Appellants as their bid could have been more competitive on the assumption that the other bidders might have had pressed for interest in that column is not acceptable. There are no material from which such a conclusion could be reached. No material has been shown from which it can be inferred that omission to fill in the blank space gave the Appellants some kind of competitive edge in the bid process. The simple interest at the rate of 8% would be just and equitable on the sum left unpaid - appeal allowed.
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