The Hon’ble SC in the matter of “Sri Chittaranjan Maity v. Union of India bearing Civil Appeal Nos. 15545-15546 of 2017 arising out of SLP (C) Nos. 39038-39039 of 2012” while partly allowing the appeals, held that when parties to the contract had agreed to the fact that interest would not be awarded on the amount payable to the contractor under the contract, the Hon’ble SC gave opinion that they were bound by their understanding. The Hon’ble SC further observed that having once agreed that the contractor would not claim any interest on the amount to be paid under the contract, he could not have claimed interest either before a civil court or before an Arbitral Tribunal.” Therefore, a party (Appellant herein) is not entitled for any interest on the amount awarded as per the order passed by the Arbitral Tribunal. The Hon’ble Court further directed the respondent not to recover the excess amount withdrawn by the Appellant as Appellant had already withdrawn 50% of the amount deposited by the respondent, which was in excess of the awarded amount exclusive of interest.
The Weekly Obiter
NO INTEREST ON AWARDED AMOUNT:HON’BLE SC: OCTOBER 03, 2017
October 16, 2017