Interest rates have fallen steeply even in arbitration awards. The Supreme Court last week slashed the interest awarded by an arbitrator from 18 per cent to 6 per cent in a dispute between the Rajasthan government and Nav Bharat Construction Company.
The district court had already reduced the rate to 15 per cent, which was confirmed by the Rajasthan high court. Both the state government and the contractor appealed to the Supreme Court. The Bench consisting of Justice MB Shah and Justice BN Agrawal dismissed the appeal of the firm and cut the rate to one-third.