followed decision in Engineers-De-Space-Age (supra). Same is also
required to be diluted to the extent that express stipulation under contract
may debar the Arbitrator from awarding interest pendente lite. Grant of
pendente lite interest may depend upon several factors such as
phraseology used in the agreement, clauses conferring power relating to
arbitration, nature of claim and dispute referred to Arbitrator and on what
items power to award interest has been taken away and for which period.
24. Thus, our answer to the reference is that if contract expressly bars
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
Arbitrator has to be considered on various relevant aspects referred to in
the decisions of this Court, it would be for the Division Bench to consider
the case on merits.
Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE PETITION [C] No.11114/2009
Union of India … Petitioner
Vs.
M/s. Ambica Construction … Respondent
(With SLP [C] No.17219/2009]
Dated;March 16, 2016
