LAW FOR ALL

Section 37(1) of Arbitration and & Conciliation Act - Award of interest - “unless otherwise agreed by the parties” categorically clarifies that the arbitrator is bound by the terms of the contract insofar as the award of interest from the date of cause of action to the date of award. Award of interest beyond the agreement clauses by arbitrator is not valid in law- Apex court held that In view of the aforesaid, the appeals are allowed and it is directed that the respondents shall not be entitled to any interest on the amount which was recovered by the appellant, till the date of award and thereafter till the date when the amount awarded was deposited in the High Court, i.e. from 12th July, 1997.= Union of India …Appellant VERSUS M/s. Concrete Products & Const. Co. Etc. ...Respondents = 2014 (March . Part) judis.nic.in/supremecourt/filename=41289