TMI Blog2017 (4) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified in granting interest pendente lite to the Appellant - pendente lite interest determined by the arbitrator, shall be paid to the Appellant, within two months from today - appeal allowed. - Civil Appeal No. 410 of 2008 - - - Dated:- 26-4-2017 - J.S. Khehar C.J.I., Dr. D.Y. Chandrachud and Sanjay Kishan Kaul, JJ. For Appellant: Raj Kumar Mehta, Adv. For Respondents: Ajit Kr. Sinha, Sr. Adv., Kiran Bhardwaj, Uday Prakash, Raj Bahadur, Advs. and Shreekant N. Terdal, AOR JUDGMENT 1. The only issue that arises for consideration before this Court is, whether the claimant, i.e., the Appellant before this Court - M/s. Ambica Construction, could have been awarded interest pendente lite by the arbitrator. The arbitrator b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y preferring A.P.O.T. No. 678 of 2001. While disposing of the above intra-court appeal, the High Court accepted the prayer made by the Union of India, and set aside the determination of the arbitrator in awarding interest pendente lite, by observing as under: In respect of award of interest as payment of interest is excluded under Clause 16(2) of the agreement and as no reason was assigned by the learned Arbitrator for awarding interest till then, in our opinion, interest could not be awarded and the award is modified by excluding interest therefrom. In above view of the findings the award stands modified by excluding the award of interest and the appeal is allowed to that extent only. 3. The impugned order passed by the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (2016) 6 SCC 36 : (AIR 2016 SC 1441, Para 24), wherein, having examined the legal position declared by this Court, by a Constitution Bench in Irrigation Department, State of Orissa v. G.C. Roy (1992) 1 SCC 508 : (AIR 1992 SC 732), it was held as under: 34. Thus, our answer to the reference is that if the contract expressly bars the award of interest pendente lite, the same cannot be awarded by the arbitrator. We also make it clear that the bar to award interest on delayed payment by itself will not be readily inferred as express bar to award interest pendente lite by the Arbitral Tribunal, as ouster of power of the arbitrator has to be considered on various relevant aspects referred to in the decisions of this Court, it would be for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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