M/S.Sayeed Ahmed & Co vs State Of U.P. & Ors

The Supreme Court held that the Arbitrator has the authority to award interest for the pre-reference period and pendente lite despite a contractual prohibition against interest claims, as per Section 34 of the Arbitration and Conciliation Act, 1996. The Court clarified that the High Court erred in assuming that the awarded amount included claims for the final bill and security deposit, emphasizing that the Arbitrator's award did not quantify these amounts. The Court reinstated the Arbitrator's award of interest, thereby overturning the High Court's reduction of interest rates and affirming the original award's legitimacy.