Award of interest in arbitration conditional
If the General Conditions of Contract in Construction Works prohibits demand of interest, arbitrators do not get jurisdiction to award interest, the Supreme Court held in its judgment in Jaiprakash Associates vs Tehri Hydro Development Corporation. The contracting company was given a project, but disputes arose over certain claims. They were referred to arbitration by a three-member panel. It gave an award largely in favour of Jaiprakash and also granted interest on the dues. Then the jurisdiction of the arbitral panel to grant interest when the General Conditions barred it became another point of conflict.