SREE KAMATCHI AMMAN CONSTRUCTIONS versus THE DIVISIONAL RAILWAY MANAGER (WORKS), PALGHAT & ORS.

SREE KAMATCHI AMMAN CONSTRUCTIONS versus THE DIVISIONAL RAILWAY MANAGER (WORKS), PALGHAT & ORS.

Given the express bar in Clause 16(2) of the General Conditions of contract, the arbitral tribunal was correct in refusing to award pre-reference and pendente lite interest to the contractor; section 31(7) obliges arbitration to respect such bar.

Source-derived case information.

Parties
Appellant: Sree Kamatchi Amman Constructions; Respondent: Divisional Railway Manager (Works), Palghat
Jurisdiction
India
Judgment Date
20 August 2010
Procedural Posture
Civil Appeal / Final Supreme Court Judgment
Outcome
Appeals dismissed.
Legal Topics
Interest Under Arbitral Awards, Contractual Bar to Interest
Arbitration Contract Interest Under Arbitral Awards Contractual Bar to Interest

Source-derived case record

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Parties

Sree Kamatchi Amman Constructions

Appellant

Divisional Railway Manager (Works), Palghat

Respondent

Procedural Posture

Civil Appeal / Final Supreme Court Judgment

Legal Issues

  1. 1 Whether the contract between the parties contained an express bar regarding award of interest
  2. 2 Whether the arbitral tribunal was justified in refusing interest for the period between the date of cause of action and the date of the award

Ratio Decidendi

Given the express bar in Clause 16(2) of the General Conditions of contract, the arbitral tribunal was correct in refusing to award pre-reference and pendente lite interest to the contractor; section 31(7) obliges arbitration to respect such bar.

Court Disposition

Appeals dismissed.

Orders

  • Parties to bear their respective costs