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Arbitration

M/S D. KHOSLA AND COMPANY versus THE UNION OF INDIA

In absence of statutory or contractual provision permitting compound interest or interest upon interest, courts and arbitrators do not award interest on interest; the award and decree referred to the 'amount awarded' i.e. the principal Rs.21,56,745 and did not specifically award 15% per annum on the pre-award interest, therefore the 15% post-award interest applies only to the principal amount and not on the pre-award interest.

Source excerpt

  • Award of interest
  • Interest upon interest
  • Compound interest
  • Pre-award interest
  • Post-award interest
  • Simple interest
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Personal injury

UNION OF INDIA versus RINA DEVI

Compensation for railway accident claims is payable at the rate applicable as on the date of accident, along with reasonable interest from the date of accident till date of payment; if tribunal award prescribes a higher amount, claimant is entitled to higher of the two. Death or injury during boarding or de-boarding a train is an 'untoward incident' and mere absence of ticket does not by itself defeat status as bona fide passenger—initial burden is discharged by claimant's affidavit, burden then shifts to Railways.

Source excerpt

  • Quantum of compensation
  • Definition of passenger
  • Strict liability
  • Self-inflicted injury
  • Award of interest
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Civil procedure

BHARAT HEAVY ELECTRICALS LTD. versus R.S. AVTAR SINGH & CO.

Respondent-decree holder is entitled to appropriate payments first to the interest due and payable on each date of payment, and whatever balance remains is adjusted towards principal; interest ceases to run on the portion of principal already paid. Both the arbitral award and court decree distinguished between award amount and interest; interest is not payable upon interest unless directed by decree. The Division Bench and Single Judge applied the proper rule of appropriation as per Supreme Court precedent.

Source excerpt

  • Execution of decree
  • Award of interest
  • Rule of appropriation
  • Payment of decretal amount
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Contract law

M/S. MSK PROJECTS (I) (JV) LTD versus STATE OF RAJASTHAN & ANR.

The Supreme Court held that District Judge and High Court erred by considering an issue not raised before the arbitral tribunal. Contractor was entitled to collect toll fee from Bharatpur-Deeg section as it was part of the project. Claim for compensation for non-execution of phase II was unjustified, as appellant had not invested for that phase. Appeals disposed, contractor entitled only to Rs. 26.34 lakhs for delay in issuing notification with 10% interest.

Source excerpt

  • Delay in government notification
  • Scope of concession agreement
  • Collection of toll fee
  • Arbitral tribunal jurisdiction
  • Award of interest
  • Compensatory nature of toll
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Arbitration law

UNION OF INDIA versus M/S. KRAFTERS ENGINEERING & LEASING (P) LTD.

Where there is an express contractual prohibition on payment of interest (Clause 1.15), the arbitrator does not have jurisdiction to award interest on amounts payable under the contract. Any award of interest would require rewriting the contract, which is not permissible.

Source excerpt

  • Jurisdiction of arbitrator
  • Award of interest
  • Contractual prohibition
  • Arbitration act, 1940
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Arbitration

STATE OF HARYANA & ORS. versus S. L. ARORA & COMPANY

Section 31(7) of Arbitration and Conciliation Act, 1996 merely authorizes arbitral tribunals to award simple interest on the principal sum unless the contract explicitly allows compound interest or interest upon interest; arbitral tribunals and courts have no general discretion to award compound interest or interest upon interest.

Source excerpt

  • Award of interest
  • Compound interest
  • Execution of arbitral award
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Arbitration

STEEL AUTHORITY OF INDIA LTD. versus J.C. BUDHARAJA, GOVERNMENT AND MINING CONTRACTOR

The arbitrator awarded damages for delay in handing over the site despite contractual prohibition, constituting a jurisdictional error. The claim was time-barred as cause of action arose in 1979 and was not referred to arbitration within the limitation period. Letter written in 1983 did not revive the claim. Award is illegal and must be set aside.

Source excerpt

  • Jurisdictional error of arbitrator
  • Limitation period for arbitration
  • Arbitrator's authority under contract
  • Speaking award
  • Award of interest
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Consumer law

UNITED INDIA INSURANCE versus AJMER SINGH COTTON AND GENERAL MILLS AND ORS. ETC.

Where the insured has voluntarily executed a discharge voucher in full and final settlement and accepted the amount without alleging fraud, coercion, or misrepresentation, and without protesting, further claims—such as for interest—are not maintainable. Discharge voucher is not a bar only if its procurement was by fraud, coercion, or similar vitiating factors, which must be pleaded and proved. Mere delay in settlement without timely protest does not justify award of interest by Consumer Forums.

Source excerpt

  • Deficiency in service
  • Estoppel by discharge voucher
  • Powers of consumer forums
  • Award of interest
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Arbitration

HIMACHAL PRADESH STATE ELECTRICITY BOARD versus R.J. SHAH AND COMPANY

The arbitrators did not act in excess of their jurisdiction as they were called upon to interpret the contract, and their award—even if based on erroneous interpretation—is final and binding, unless it shows error of jurisdiction. The claim for price revision was referred to arbitration and fell within arbitrators' powers per the contract.

Source excerpt

  • Jurisdiction of arbitrator
  • Interpretation of contract
  • Setting aside arbitral awards
  • Award of interest
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Arbitration

M/S. M.K. SHAH ENGINEERS AND CONTRACTORS versus STATE OF MADHYA PRADESH

The respondent-State, by its conduct and acquiescence, waived the requirement of prior decision by the Superintending Engineer under the arbitration clause; awards except for interest up to dates of reference are valid and must be made rule of court.

Source excerpt

  • Arbitration clause enforceability
  • Appointment of arbitrator
  • Award of interest
  • Waiver of procedural pre-requisites
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About this LexChat collection

India decisions are organised by court, judge, legal area and indexed issue so a practitioner can move from a proposition to a citable authority with the surrounding context intact.

Source links and collection timestamps are retained alongside the indexed records.