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Head Note

The Arbitration and Conciliation Act, 1996  - Section 34 , Section 37 (1)

Refusal of the Arbitral Tribunal to award previous and pendente lite interest on the sum awarded - Held, in view of specific bar contained in Clause 16 (2) of the General Conditions of Contract, no interest could be paid therein as claimed - Further, section 37 (1) of the Act uses the words "unless otherwise agreed by the parties" which categorically clarifies that the arbitrator is bound by the terms of the contract in so far as the award of interest from the date of cause of action to date of award is concerned - No interference warranted - Appeals dismissed.

Topic(s)-Interest , Arbitrator award

Important Decision(s)- Interest - Arbitrator is bound by the terms of the contract.