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Head Note

Interest Act, 1978  - Section 3

Rate of Interest - Recovery of any debt or damages - Proceedings of Section 3 of Act empowers Court to award interest at prevailing rate in banking transactions - Court, thus, impliedly has power to vary rate of interest agreed by parties.

The Arbitration and Conciliation Act, 1996  - Section 34 (2)

Arbitration award - Arbitral tribunal although cannot travel beyond terms of reference but in exceptional circumstances when party pleads that demand by another party is beyond the terms of contract and statutory provisions may warrant examination of terms of contract as well as statutory provisions by tribunal - Absence of proper pleadings and objections, such course may not be permissible - (2006)4 SCC 445 relied on.

Topic(s)-Contract Contains an Arbitration Agreement

Important Decision(s)- Absence of proper pleadings and objections, such course may not be permissible.